UAE Mandates Female Representation on Private Company Boards Starting 2025
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- A1emsadmin
- September 18, 2024
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UAE Mandates Female Representation on Private Company Boards Starting 2025
The Ministry of Economy in the UAE has taken a significant step toward increasing gender diversity in the corporate sector by mandating that private joint-stock companies must have at least one woman on their board of directors. This new requirement, set to take effect from January 2025, aims to promote women’s representation in leadership roles and enhance corporate governance practices across the country.
This decision is part of the UAE’s broader effort to empower women and strengthen their participation in the business world, particularly in senior leadership positions. It follows the successful implementation of a similar mandate in 2021, when the UAE Securities and Commodities Authority (SCA) required public joint-stock companies listed in Abu Dhabi and Dubai stock markets to have at least one female board member. That decision significantly improved corporate performance and expanded the presence of women in high-level decision-making roles.
Abdullah bin Touq Al Marri, the UAE’s Minister of Economy, emphasized that women have consistently demonstrated their ability to contribute meaningfully to the economy, noting their increasing influence in various sectors, including finance, business, and investment. He highlighted that this new directive would not only enrich the decision-making processes within companies but also help drive sustainable economic growth by harnessing the perspectives and expertise of successful women leaders.
Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, praised the ministry’s decision, noting that it would have a substantial impact on advancing gender balance across sectors. She reaffirmed that women are “essential partners in the nation’s development,” and this initiative, aligned with the council’s vision, will contribute to the UAE’s overall economic growth and global leadership in gender equality.
In support of this mission, Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, has been at the forefront of initiatives aimed at increasing women’s participation in leadership positions, aiming for 30% representation by 2025. Her leadership has been instrumental in promoting gender equality and enhancing women’s role in the UAE’s economic development.
This latest ministerial decision is a testament to the UAE’s ongoing efforts to create an inclusive corporate environment where all voices are heard, ensuring that women continue to play a vital role in the country’s progress and economic success.
(With inputs from WAM)