UAE Mandates Women’s Inclusion on Corporate Boards by 2025

• UAE aims to enhance diversity and empower women in leadership roles.
• To reshape the corporate landscape, the Ministry of Economy mandates that all privately owned companies appoint at least one woman to their Boards.
• Starting January 2025, this initiative follows a 2021 mandate requiring listed companies to do the same.

UAE ‘women on Boards’ mandate

Starting January 2025, all private joint-stock companies in the UAE must appoint at least one woman to their board of directors.

Companies must implement this requirement after the current board’s term ends.

This regulation comes from the UAE Ministry of Economy, as part of a larger strategy to boost diversity and elevate women into leadership roles.

The Ministerial Resolution 137 of 2024 aims to improve governance for private joint-stock companies. It is a significant part of the UAE’s broader strategy to enhance corporate diversity.

Previous such mandates

The current rule follows a 2021 mandate requiring listed companies to have at least one woman director on their boards.

This led to an increase in female Board seats from 29 in 2020 to 77 in 2022, as reported by The National.

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Gender equality initiative in the UAE

In an official statement highlighted by Business Standards, Abdulla bin Touq Al Marri, Minister of Economy, emphasized the importance of this decision.

“It reinforces the UAE’s vision to enhance gender balance, empowering women in the business sector, and increasing their presence in leadership and decision-making roles,” he declared.

Initiatives to elevate women in business leadership

Minister Al Marri also expressed appreciation for Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, whose tireless efforts have propelled this movement forward.

Initiatives like the “Women on International Boards” program and the “SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector” aim to raise women’s representation in leadership positions to 30% by 2025.

Collaborative effort

Mona Ghanem Al Marri, vice president of the UAE Gender Balance Council, underscored the strategic collaboration between the Ministry of Economy and the Council.

She believes this decision will significantly advance gender balance in the corporate landscape.

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Wrapping up

Despite this encouraging development, some businesswomen are raising eyebrows.

They question why legislative action is necessary to prompt private companies to include more women on their boards.

Shouldn’t this change have emerged naturally?