Microfinance as a Catalyst for Women’s Empowerment and Human Capital: Insights from Middle East and North Africa

Unlocking the full potential of individuals, particularly women in developing regions, remains a significant challenge for achieving sustainable development. Although microfinance is widely acknowledged as an effective instrument for promoting economic empowerment and alleviating poverty, its impact on human capital enhancement through women's empowerment has not been sufficiently examined in the literature. This study addresses this gap by investigating the relationship between microfinance access, women's economic empowerment, and human capital development in the Middle East and North Africa (MENA) region. Using a Two-Stage Least Squares regression framework, the analysis provides empirical evidence that microfinance access positively influences women's empowerment, which subsequently contributes to the improvement of human capital indicators. The findings identify microfinance as a critical mechanism for fostering sustainable economic growth and promoting gender equality. This research offers valuable implications for policymakers and scholars interested in advancing development through financial inclusion in the MENA region.