How Will UAE's Latest Move Impact Women in Leadership?

The UAE is taking another big step to improve gender diversity in the corporate world. The Ministry of Economy has introduced a new rule that requires private joint-stock companies to have at least one woman on their boards of directors once the current board's term is over. This move aligns with the country's broader goal of increasing women's representation in leadership roles and promoting diversity in business.

This decision is part of a larger strategy to enhance the UAE's global competitiveness, and it shows the government’s strong commitment to empowering women. It’s about making sure women are more involved in the country’s sustainable development, especially in leadership positions.

The decision, outlined in Ministerial Resolution No.137 of 2024, mirrors a similar policy that was applied to public joint-stock companies, which has already had a positive impact by improving company performance and economic outcomes. Abdullah bin Touq Al Marri, the UAE's Minister of Economy, emphasised how important this decision is, highlighting how women in the UAE have already made significant contributions to business, finance, and investment sectors. He believes this new initiative will add value to private companies by bringing in the diverse insights and experiences of successful businesswomen.

A key figure in promoting these changes is H.H. Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, who has been a strong advocate for increasing women's participation in the economy. Her efforts, like the "Women on International Boards" program and the "SDG 5 Pledge," aim to boost women's representation in leadership positions to 30 percent by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, also stressed the significance of this collaboration between the Ministry of Economy and the Gender Balance Council. She mentioned how this decision is going to advance gender balance and contribute to the UAE’s overall economic growth. It’s seen as a transformative step, and it positions the UAE as a global leader in gender equality.

Starting in January 2025, private joint-stock companies will need to include this requirement in their future board restructuring plans. The Ministry is pushing for boards that represent all parts of society, aiming to adopt global best practices in corporate governance. This follows a similar decision made in 2021 for public joint-stock companies, showing the UAE’s ongoing commitment to empowering women in both the private and public sectors.