Mandates Are a Start, But True Inclusion Needs More

The GCC is making strides in pushing for more inclusion, as amplified by the UAE’s recent mandate requiring at least one woman on every corporate board by January 2025. Initiatives like these are cropping up across the region as part of a broader effort to bring more diversity at every level of leadership. It's a move that many have welcomed. 

“Mandating at least one woman member per board is a great initiative and a step in the right direction”, remarks Mona Jalota, Founder & Managing Director of Krypton Global Real Estate. 

But why this mandate? Historically, the GCC has been a male-dominated region, particularly in the highest echelons of leadership. Women hold only 10.8% of board seats in publicly listed companies in the UAE, according to the GCC Board Gender Index Report 2024, released earlier this year. 

Additionally, the 2023 Global Gender Gap Report by the World Economic Forum also found that the MENA region is the “furthest away from gender parity”.  

When we look at these statistics, it's easy to see why this initiative is seen as a great step forward, a door-opener for more women to enter the leadership positions in the UAE. But one could argue that companies that are truly committed to inclusion likely already have women on their boards and in management positions. 

As for those who haven’t - and now must comply with this mandate - there’s a potential risk that this could lead to tokenism.

The risk of doing just enough

What exactly is tokenism? It is when an organization hires or appoints someone primarily as a symbol of inclusion or compliance, to avoid the appearance of prejudice. In this particular context, it’s when a woman is appointed to a board not for her skills or experience, but simply to fulfill a quota. 

It’s a hushed down topic, reported anecdotally at best, if at all, with little data to back it up in the GCC region. Does that mean women in this region don’t experience this? Not necessarily.

An article on AGBI that examines women joining UAE board mentions “campaigners in the Gulf have warned that progress on boardroom diversity remains slow and some female appointments feel like “tokenism”. This vague sentiment echoed by many reflects the actual reality of how most statements on tokenism seem to lack hard evidence in the GCC region.

However, evidence of tokenism has been found across many other international cities where a similar quota system was introduced. 

A study conducted across listed firms in Europe found that “the appointment probability of women declines strongly with an increasing share of women below gender balance. Quotas increase the attention on gender and seem to increase token appointments.”

Another review of gender diversity on Hong Kong boards stated that “existing women directors can feel that their own achievement in reaching board level is diminished by the introduction of quotas…women appointed to the board under a quota regime may have ongoing doubts as to whether they were the preferred candidate or appointed only as ‘tokens’ to meet a quota requirement.”

Many similar studies echo this sentiment. And although quotas themselves aren’t bad, and in most cases quite necessary, the “one-woman quota” can lead to a dangerous issue of tokenism in a region where the need to come up with this mandate itself was because progress in diversity among board positions has been so slow. 

When women are hired as tokens, they may feel isolated or pressured, where they may be given a seat at the table but not the authority or influence to make meaningful contributions - or feel discouraged to voice their opinions because of the imbalance in power dynamics.

“The few women who are on boards tend to be the only female, which gives a feeling of tokenism and is just added to the mix for the sake of it”, shared Emma Burdett, Founder of Women in Leadership Delivered (Wild), in the same AGBI article quoted earlier.

Is appointing one woman on each board really enough to move the needle on diversity, or does true progress require a critical mass of women who can influence decisions and reshape corporate culture?

Symbolism vs substance

The Board Monitor report by Heidrick & Struggles says, “While having a lone woman on each board is a good start, boards will see more benefits of gender diversity when their female directors have the numbers to build influence and have an impact”.

There is a great study on the critical impact of having at least three women on corporate boards, with interviews excerpts from multiple anonymous corporate board members. On the question of why three, the study found that:

“First, multiple women help to break the stereotypes that solo women are subjected to. Second, a critical mass of women helps to change an all-male communication dynamic. Third and finally, research on influence and conformity in groups indicates that three may be somewhat of a ‘‘magic number’’ in group dynamics, which suggests that having three women may be particularly beneficial for creating change.”

The presence of three women, rather than just one or two, fundamentally shifts the boardroom dynamic. One woman might still be seen as an outsider, and two could be dismissed as exceptions to the rule. But three or more creates a critical mass where women’s perspectives become normalized, and the power dynamics begin to shift.

The study also found that with just one or two women on boards, tokenism can still exist. However, a more impactful number can make all the difference in boardroom dynamics and promote genuine inclusion and diversity.

But progress is slow in the GCC region. “At the current rate of progress, full regional parity will be attained in 2156, 152 years away.”, quotes an AGBI article. That’s a timeline no one should be willing to accept. We can close the gap exponentially faster, given organizations take the right strategic steps. 

So how do we ensure this happens faster and diversity moves beyond the “one woman” metric?

Real change must start at the top, but it can’t stop there

Ultimately, real change trickles down from the top. Sociologists would call this the “role-model” behavior. When women see other women thriving as leaders in management and boardroom positions, appointed based on their performance and merit, it sets a powerful precedent that creates an amazing ripple effect for all women.

Not just for women, for your organization too. McKinsey's 2020 Diversity Wins report found that companies with more gender-diverse boards are 25% more likely to have above-average profitability.

What other strategies can organizations adopt to make sure they are enabling true inclusion?

• Create an equitable performance-oriented workplace
  
  Organizations should create pathways where women can rise through the ranks naturally, where we build a culture that ensures women stand on the same ground as their male counterparts based on their merit and performance (because let’s be honest, they’ve more than earned it), not just because the law says they should be there.
  
  Professor Dame Heather McGregor from Heriot-Watt University, Dubai, emphasizes, “Companies need to foster an equitable workplace culture where performance and skills are the primary criteria for growth.”
  
  But making it happen requires intentional efforts. HR departments must ingrain diversity-affirming strategies into the very DNA of their workplace policies and culture. And as McGregor adds, “One suggestion is to challenge any shortlist that doesn’t have a woman on it and insist that all shortlists are 50 percent women. By addressing such barriers, companies can significantly help women rise to leadership roles based on their capabilities without the need for quotas”.
  

• Enable continuous education and mentoring
  
  Mona rightly points out, "The inclusivity and the acceptance of women having a more significant voice in decision-making roles will only come with constant education. Education on the advantages of what women leaders bring to the table, how women leaders can impact the bottom line and be relevant contributors to the workforce”.
  
  This goes hand in hand with structured mentorship programs, which ensure that women have the right guidance, networks, and support systems behind them. With the confidence that comes from having a mentor and a supportive network, they can navigate their careers without second-guessing their position or potential at the workplace.
  

• Building a pipeline of female talent
  
  Creating a diverse leadership team starts long before a woman reaches the boardroom. Companies need to focus on building a strong pipeline of female talent from the ground up.
  
  This may look like investing in leadership or career development programs for women, providing more opportunities for skill-building, but essentially, making sure that you have nurtured the next generation of female leaders who are equipped to rise to leadership positions as much as their male counterparts - based on skills, performance and merit.
  

• Regular review of DEI policies
  
  This should be a no-brainer, really. Companies need to regularly review and update their diversity policies, not just at the senior leadership but across all levels of the organization. This means fostering a genuinely inclusive environment, not just one that ticks off a DEI checkbox.
  
  Organizations need to actively ensure that there are no inherent biases that will affect decision-making processes. By setting up a schedule to regularly review their workplace structure and policies, companies can remain agile and build long-term sustainability for gender diversity at the highest levels.