Should we stop talking about how many women there are on boards and start talking about what they are doing there? The debate surrounding women’s representation in the boardroom has matured significantly in recent years, transitioning from a focus on mere presence to exploring women’s influence in pivotal board roles. As one of the founders of the 30 per cent club, in the UK back in 2010, I have long been an observer of gender representation on public company boards, but I think the focus needs to be more specific.
Recently, for example, I was actively involved in identifying and tracking the women serving on audit committees in the UAE, and authoring a report on the subject published by Grant Thornton. The process of getting the data and interrogating it has given me insights into this evolution and underscores why the role of women in corporate governance is vital for the UAE’s economic and social progress.
Accelerating gender diversity in the UAE
The UAE has emerged as a leader in the Gulf Cooperation Council (GCC) countries regarding women’s board representation. Our recent GCC Gender Board Index Report indicates that women hold 10.8 per cent of board positions in the UAE, double the regional average of 5.2 per cent. This progress has been catalysed by proactive government policies, such as the establishment of the Gender Balance Council in 2015 and the 2021 directive from the Securities and Commodities Authority mandating at least one woman on the board of all listed companies.
Furthermore, in September 2024, the Ministry of Economy in the UAE reinforced this commitment by requiring private companies to allocate at least one board seat to women after their current board’s term ends.
Such measures reflect a broader recognition that diversity in leadership fosters better decision-making, reduces groupthink, and brings varied perspectives critical for sustainable growth. There are plenty of studies showing that boards with diverse membership are more likely to promote transparency, enhance corporate governance, and ensure accountability.
But as everyone who has ever served on a board knows, what really matter are the work of the various committees on the board – the nomination, renumeration and audit committees being the key ones.
Women’s influence on audit committees
Audit committees occupy a unique and critical position within corporate governance. They are tasked with overseeing financial reporting, internal controls, and compliance, thus serving as guardians of an organisation’s financial integrity. The qualities of independence, diligence, and ethical focus—often associated with female directors—align seamlessly with the responsibilities of audit committees.
Our analysis of 148 UAE-listed companies revealed promising developments in gender representation on audit committees. The findings are noteworthy: 66 audit committee positions are held by women, and 22 committees are chaired by women. These women, who make up 13.3 per cent of audit committee chairs, surpass the overall female board representation of 10.8 per cent in the UAE, highlighting the strides women are making in governance.
The strategic role of women in corporate governance
Women’s contributions to audit committees extend beyond numbers. The research underscores that female directors bring unique perspectives to the table, emphasising ethical decision-making and long-term value creation. Their presence is associated with increased transparency and improved financial oversight—qualities that resonate particularly well with the UAE’s aspirations to solidify its global reputation as a hub for investment and innovation.
Moreover, the role of women on audit committees serves as an indicator of their growing influence within corporate leadership. Chairing an audit committee requires technical expertise, strategic acumen, and a deep understanding of governance frameworks. That 22 UAE audit committees are chaired by women reflects not just inclusion but recognition of their capabilities and leadership.
Why women’s leadership matters
The UAE’s commitment to gender diversity is not just a matter of equity; it is a strategic economic imperative. Diverse boards are better equipped to address complex challenges, foster innovation, and build resilience in the face of uncertainties. By enabling women to take on influential roles, the UAE is setting a precedent for other GCC countries and beyond.
Beyond corporate benefits, increasing female representation on boards contributes to the UAE’s broader goals of societal development and gender equality. It sends a powerful message about inclusivity, aligning with the nation’s vision for a sustainable and progressive future.
The road ahead
While the progress in women’s representation on UAE boards and audit committees is commendable, there is still work to be done. Stakeholders, from policymakers to corporate leaders, must continue to champion gender diversity, not as a box-ticking exercise but as a cornerstone of effective governance.
So the increasing proportion of women on audit committees in the UAE is not just an indicator of progress, but a milestone toward a more equitable and prosperous UAE. Women’s growing presence as the chief of audit committees in particular signifies a transformative shift in leadership dynamics. It is a testament to the UAE’s commitment to harnessing the full potential of its talent pool, ensuring that its boards—and by extension, its economy—are equipped to thrive in a competitive global landscape.
As we celebrate these advancements, we must remain vigilant and committed to driving further change. The path to gender parity in leadership is long, but with sustained effort and collective will, the UAE can continue to lead by example, proving that diversity is not just desirable but indispensable.
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