UAE makes women on board mandatory from 2025

DUBAI:  United Arab Emirates has announced a mandate requiring private joint-stock companies to allocate at least one seat for women on their boards of directors after the current board terms conclude.

The directive, articulated by the UAE’s Ministry of Economy, will come into effect in January 2025 and is a crucial element of the nation’s overarching strategy to enhance diversity in business leadership and increase women’s representation in decision-making roles.

The initiative, formalised through Ministerial Resolution 137 of 2024, reflects a broader commitment to progressive governance structures within the UAE, following a successful initiative that previously mandated similar requirements for public joint-stock companies.

The prior resolution has already shown promising results, enhancing not only institutional performance but also overall economic outcomes, thereby substantiating the efficacy of such gender-balanced initiatives.

Abdulla bin Touq Al Marri, Minister of Economy, emphasised the UAE’s vision of achieving gender balance, reinforcing the critical role women play in economic growth. His acknowledgment of women’s substantial contributions across various sectors underlines a cultural and structural shift within the Emirati business landscape.

Augmenting women’s participation

Over the past few decades, women in the UAE have demonstrated their competitiveness and capabilities, positioning themselves as invaluable partners in fostering economic development and elevating the nation’s global standing.

Furthermore, Al Marri recognised the pivotal role of Sheikha Manal bint Mohammed bin Rashid Al Maktoum, the President of the UAE Gender Balance Council, whose dedicated efforts have led to various initiatives aimed at augmenting women’s participation in the economy.

Programmes such as ‘Women on International Boards’ and the ‘SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector’ have been instrumental in fostering an environment that promotes women, targeting a representation increase to 30 percent in leadership roles by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, echoed the sentiments of the Minister, highlighting the strategic collaboration between the Ministry of Economy and the Gender Balance Council. She articulated the potential of this decision to significantly advance gender balance in corporate governance, envisaging a future where women not only occupy positions on boards but also influence corporate strategies and outcomes.

The historical context of this movement is notable; in 2021, the Board of the UAE Securities and Commodities Authority (SCA) implemented a similar requirement for public joint-stock companies listed on the Abu Dhabi and Dubai stock markets.

The extension of this mandate to private joint-stock companies reflects a coherent and sustained effort to empower women within all levels of corporate leadership across the UAE.