Uae Mandates Women’s Representation On Boards Of Private Joint-stock Companies From 2025

By Author: The Law Reporters
Total Articles: 34
Comment this article

Starting January 2025, private joint-stock companies in the UAE will be required to allocate at least one seat on their boards of directors for women. This new regulation, issued by the UAE’s Ministry of Economy, aims to enhance gender diversity in corporate governance. The mandate will come into effect after the current boards of directors complete their terms.

The decision is part of the UAE's broader initiative to expand the role and representation of women in leadership positions, aligning with the nation's ongoing efforts to promote gender equality across various sectors.

Promoting Gender Balance in Leadership

The new mandate for private joint-stock companies mirrors similar measures previously enacted for public joint-stock companies. In 2021, the UAE Securities and Commodities Authority (SCA) required companies listed on the Abu Dhabi and Dubai stock markets to have at least one woman on their boards. The Ministry of Economy’s latest decision extends this requirement to private companies, reinforcing the UAE’s commitment to empowering women in leadership roles.

The Ministerial Resolution ...
... No.137 of 2024, which outlines the regulation of governance and operations for private joint-stock companies, highlights the UAE’s vision for gender balance. This follows the precedent set by Sheikh Khalifa bin Zayed Al Nahyan, who in 2018 directed that 50% of the Federal National Council seats be reserved for women, reflecting the importance of women's representation at all levels of decision-making.

Empowering Women in Business

Abdullah bin Touq Al Marri, the UAE Minister of Economy, hailed the decision as a significant step toward improving the performance and governance of private companies. He emphasized the value women bring to corporate boards through their unique insights and experiences, which can drive innovation and strengthen institutional governance.

He also expressed gratitude to Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, for her relentless efforts in advocating for women's greater involvement in the economy. Her initiatives aim to raise women's representation in leadership roles to 30% by 2025, aligning with the UAE's strategic objectives.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, also noted the far-reaching impact of this decision. She emphasized that women are essential partners in the UAE’s development across sectors and that increasing their presence on boards of directors will help achieve a more balanced and inclusive economy.

A Continued Commitment to Gender Equality

The UAE has consistently demonstrated its commitment to gender equality. In 2020, the country passed a decree ensuring that women and men receive equal pay for equal work. With this latest decision, the government continues to prioritize gender diversity, particularly in leadership roles, as it works toward a more inclusive future.

By mandating women’s representation on corporate boards, the UAE is fostering a culture of inclusion and ensuring that women have greater opportunities to contribute to the nation’s economic growth and success.

Source : https://thelawreporters.com/