Gender disparity effect among financially included (and excluded) women in the Middle East and North Africa

Using the 2017 World Bank’s Global Findex database, this study aims to investigate the effect of gender disparity on the financial inclusion (and exclusion) of women in a sample of 16 countries in the Middle East and North Africa (MENA) region. The results of the probit models suggest the existence of significant gender gaps in the access to and use of formal and informal financial services such as the ownership of financial institution accounts, mobile money accounts, credit card, and the usage of savings and credit products. Being a woman reduces the probability of having an account at a financial institution or through a mobile money provider, of formally saving at a financial institution, and of taking loans regardless of purpose. However, being a woman increases the probability of owning a credit card and saving semi-formally, by using a savings club or a person outside the family. Our analysis also highlights that the lack of enough money, religious concerns, and the fact that a family member already has an account are the most relevant factors in explaining the financial exclusion of women in the countries analysed. The findings of this study are beneficial for policymakers to promote financial inclusion for women and remove the barriers they face to access and use financial services. Reducing gender disparity in financial inclusion is crucial to enhance women’s economic empowerment and promote inclusive development across emerging markets and developing economies of the MENA region.