 "UAE makes women on board mandatory for private joint-stock cos from 2025")
The United Arab Emirates on Wednesday announced mandating private joint-stock companies in the country to allocate at least one seat for women on their boards of directors after the completion of the current board's term.
The United Arab Emirates' Ministry of Economy further announced that the implementation of this decision will commence in January 2025 and urged the private joint-stock companies to factor this requirement into their future board restructuring plans.
This decision is a vital component of the nation's broader strategy to enhance diversity in the corporate sector and increase women's representation in leadership roles, the Ministry announced on Wednesday.
The Ministerial Resolution 137 of 2024, which addresses the regulation of private joint-stock companies' governance and operations, follows a similar initiative previously applied to public joint-stock companies, it said, adding, the earlier decision has already yielded positive results, enhancing institutional performance and economic outcomes.
Abdulla bin Touq Al Marri, Minister of Economy, said 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.
Over the past decades, women in the UAE have consistently proven their capabilities, making significant contributions to the business, financial, and investment sectors. Today, they are indispensable partners in economic growth and vital to the UAE's global competitiveness, he said.
He also expressed his gratitude to Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, for her tireless efforts to increase women's participation in the economy.
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Her initiatives, including the 'Women on International Boards' programme and the 'SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector' have been instrumental in promoting gender balance and aim to raise womens' representation in leadership positions to 30 per cent by 2025.
Mona Ghanem Al Marri, vice president of the UAE Gender Balance Council, highlighted the strategic collaboration between the Ministry of Economy and the Council, noting that the Ministry's decision will have a significant impact on advancing gender balance.
In 2021, the Board of the UAE Securities and Commodities Authority (SCA) issued a landmark decision that mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have at least one woman board member.
The latest decision of the Ministry of Economy to extend the requirement to private joint-stock companies further supports the UAE's vision to empower women and encourage them to play a greater role on the boards of listed companies.