The UAE Ministry of Economy has issued a ministerial decision requiring private joint-stock companies to allocate at least one seat for women on their boards of directors after the completion of current board terms.
This initiative, set to begin in January 2025, aims to enhance diversity in the corporate sector and increase women’s representation in leadership roles.
Ministerial Resolution No. (137) of 2024 follows a similar mandate previously applied to public joint-stock companies, which has shown positive results in institutional performance and economic outcomes.
“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. This decision will bring added value to private joint-stock companies, enhancing their institutional performance by drawing on the insights and experiences of successful businesswomen in the country,” Abdulla bin Touq Al Marri, Minister of Economy said.
Al Marri expressed gratitude to Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, for her efforts to increase women’s participation in the economy.
Her initiatives aim to raise women’s representation in leadership positions to 30 per cent by 2025.
“Guided by Sheikha Manal bint Mohammed bin Rashid Al Maktoum, the decision paves the way for greater women’s representation on boards, a transformative step that will contribute to the UAE’s comprehensive economic growth. Aligned with Her Highness’s vision of women as essential partners in the nation’s development across sectors, the decision reaffirms the UAE’s strong record and global leadership in gender balance,” Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council added.
UAE enhances gender diversity
The Ministry of Economy has urged private joint-stock companies to factor this requirement into their future board restructuring plans.
This decision aligns with the country’s efforts to raise its global competitiveness rankings and demonstrates the leadership’s commitment to empowering women in sustainable development.
In 2021, the Board of the UAE Securities and Commodities Authority (SCA) mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have at least one woman board member.
The extension of this requirement to private joint-stock companies further supports the UAE’s vision to empower women and encourage their participation on company boards.
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