Starting January 2025, all private joint-stock companies in the UAE will be required to allocate at least one board seat to women. This follows the expiration of current board terms and builds on a 2021 mandate for public joint-stock companies, reflecting the UAE’s commitment to advancing gender equality in corporate governance.
The initiative aligns with the UAE Gender Equality Council’s objective of achieving 30% female representation on corporate boards by 2025. Abdulla bin Touq Al Marri, Minister of Economy, emphasized the significance of the move, stating, “This supports our commitment to enhance gender balance, empower women in the business sector, and increase their presence in leadership and decision-making roles.”
Progress in Gender Representation
The UAE has already observed positive outcomes from earlier reforms in public companies. Increased female board representation has been linked to improved institutional performance and economic results, contributing to the country’s rise in the Gender Inequality Index under the United Nations Development Program. Sheikha Manal bint Mohammed bin Rashid Al Maktoum attributed this progress to leadership support, noting the UAE’s efforts to enhance women’s representation across economic, political, and social fields.
Despite this progress, women held just 8.9% of board seats in UAE-listed companies in 2022, according to recent data. Experts caution that meeting quotas alone will not suffice. Alison Reynolds, a diversity and inclusion researcher, warned that quotas could backfire if boards fail to empower female members to contribute effectively.
Challenges and Recommendations
Experts recommend a three-pronged approach to ensure the success of the mandate:
- Amplify Diverse Voices: Boards must cultivate inclusive cultures where all members feel empowered to participate in decision-making. This involves addressing unconscious biases, encouraging open dialogue, and promoting psychological safety.
- Support New Appointees: Proper onboarding is critical to equipping female board members with the skills needed for governance and influence. Mentorship, shadowing programs, and tailored training can help new appointees navigate board dynamics and contribute meaningfully.
- Build a Talent Pipeline: To sustain long-term progress, organizations should actively develop the next generation of female board candidates. Initiatives like shadowing programs and leadership development can prepare women for future board roles.
Dr. Najat Benchiba-Savenius, an advisor to GCC businesses, emphasized that achieving genuine diversity requires merit-based appointments rather than tokenism. “Boards must invest in cultivating talent early and supporting appointees as they transition into leadership roles,” she said.
A Step Toward Sustainable Growth
The mandate reflects the UAE’s broader vision of economic growth and competitiveness. “Women are indispensable partners in economic growth and vital to the UAE’s global competitiveness,” Al Marri noted.
While challenges remain, the initiative sets a foundation for a more inclusive corporate landscape, where diversity drives innovation and sustainable growth.
