UAE to require private companies to have women on boards of directors under gender equality drive

The decision by Ministry of Economy will come into effect from January 2025

(The National) – The UAE on Wednesday issued a directive requiring private companies to ensure female representation on boards of directors to bolster gender equality efforts.

The move, announced by the Ministry of Economy, is aimed at private joint-stock companies and will come into force in January. Such companies are businesses owned by their investors and require a board of directors to oversee their operations.

“The new decision requires private joint-stock companies in the UAE to allocate at least one seat for women on their boards of directors after the completion of the current board’s term,” said a Dubai Media Office statement.

It’s part of the UAE government’s efforts to “enhance the role of women in the private sector”, correct gender disparities and strengthen their position as decision-makers.

“The decision reinforces the UAE’s vision to enhance gender balance, empowering women in the business sector, and increasing their presence in leadership and decision-making roles,” said Abdulla bin Touq, Minister of Economy.

Mona Al Marri, Vice President of the UAE Gender Balance Council, added that it’s “a transformative step that will contribute to the UAE’s comprehensive economic growth” and “demonstrates the country’s unwavering commitment to empowering women”.

The announcement comes days after Mouza Al Suwaidi took over as Secretary General of the Council.

Sheikha Manal bint Mohammed, president of the Council, said her appointment underscored the UAE’s commitment to supporting Emirati women and strengthening their roles as leaders and decision-makers.

Boosting female representation

In March 2021, Listed companies in the UAE were mandated to have at least one female director on their boards. A study conducted the next year showed significant strides had been made to improve access to positions of power for women by listed businesses.

Women held 77 seats in the boardrooms of listed companies in 2022, up from 29 seats in 2020, according to a study by Aurora50, a social enterprise working towards gender equality in GCC boardrooms, and the Mohammed bin Rashid School of Government.

Women made up 8.9 per cent of the 868 board seats of the 115 listed companies on the Abu Dhabi Securities Exchange and the Dubai Financial Market as of June 2022, up from 3.5 per cent in 2020, the report showed.

The UAE Gender Balance Council was created in 2015 to help become one of the world’s top 25 countries for gender equality by 2021.

The UAE committed an additional $15 million to UN Women last year over three years to promote gender equality, empower women and girls worldwide and advance their participation in conflict prevention and peace-building.

The country is currently serving on the UN Women executive board. It previously served as a board member from 2013-2019 and its president in 2017.

In March, the UAE was ranked seventh on a global list of nations for efforts to promote gender equality on the Gender Inequality Index, which is part of a UN human development report.

The UAE moved up four places from its previous ranking in the index. The report ranked countries on their efforts to reduce inequality between women and men.

In November last year, the UAE launched a drive to increase the number of women working in the industrial sector.