Women must be on boards of private joint-stock firms, UAE announces

The UAE Ministry of Economy has issued a landmark decision mandating that private joint-stock companies allocate at least one seat for women on their board of directors.

This directive, set to take effect after the current board’s term, marks a significant step in the country’s broader agenda to enhance corporate diversity and strengthen women’s representation in leadership roles.

The new requirement aligns with the UAE’s strategy to boost its global competitiveness rankings and emphasises the leadership’s commitment to empowering women as crucial contributors to the nation’s sustainable development.

Mandate for female representation on board is part of aim to enable gender balance

The move follows the 2021 mandate for public joint-stock companies listed in Abu Dhabi and Dubai to include women on their boards to foster female participation in corporate governance.

Ministerial Resolution No 137 of 2024, which governs the operations of private joint-stock companies, supports the UAE’s digital transformation goals. Abdullah bin Touq Al Marri, Minister of Economy, stated that the initiative reinforces the UAE’s vision of enhancing gender balance and increasing women’s leadership roles across the business landscape.

“Women in the UAE have consistently demonstrated their capabilities, becoming indispensable to economic growth and global competitiveness,” Al Marri said, expressing gratitude for the efforts of Sheikha Manal bint Mohammed bin Rashid Al Maktoum, president of the UAE Gender Balance Council.

The mandate is part of broader initiatives, such as Sheikha Manal’s “Women on International Boards” programme and the “SDG 5 Pledge,” which aim to increase female representation on corporate boards to 30 per cent by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, praised the decision as a critical move toward furthering the UAE’s leadership in gender equality, stating, “This decision will contribute significantly to the UAE’s comprehensive economic growth.”

Private joint-stock companies are urged to incorporate this requirement into future board restructuring plans, with implementation commencing in January 2025.

Read: Women now hold 10.8% of board seats in listed UAE firms, reveals report