Ministry of Economy mandates private joint-stock companies to represent women on boards of directors

The Ministry of Economy has issued a ministerial decision mandating private joint-stock companies in the UAE to allocate at least one seat for women on their boards of directors after the completion of the current board's term. This decision is a vital component of the nation's broader strategy to enhance diversity in the corporate sector and increase women's representation in leadership roles. Aligned with the UAE's efforts to raise its global competitiveness rankings, the initiative demonstrates the leadership's unwavering commitment to empowering women, ensuring they play a vital role in the country's sustainable development. The Ministerial Resolution No.137 of 2024, which addresses the regulation of private joint-stock companies' governance and operations, follows a similar initiative previously applied to public joint-stock companies. The earlier decision has already yielded positive results, enhancing institutional performance and economic outcomes. Abdullah bin Touq Al Marri, Minister of Economy, emphasised that under the guidance of the UAE's wise leadership, the nation remains dedicated to strengthening women's contributions across various fields, especially in economic development. The latest decision 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. The initiative further strengthens the UAE's global competitiveness and its position as a leader in gender equality. He further said, "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." He also expressed his deep gratitude to H.H. Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council and wife of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, for her tireless efforts to increase women's participation in the economy. Her initiatives, including the "Women on International Boards" programme and the "SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector," have been instrumental in promoting gender balance and aim to raise women's representation in leadership positions to 30% by 2025. Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, highlighted the strategic collaboration between the Ministry of Economy and the Council, noting that the ministry's decision will have a significant impact on advancing gender balance. "Guided by H.H. Sheikha Manal, 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," she said. "The decision reflects the close, fruitful collaboration between the ministry and the UAE Gender Balance Council, demonstrating the country's unwavering commitment to empowering women economically and enhancing their participation in the workforce. This initiative not only advances social development but also contributes to raising the UAE's status as a prominent global investment destination. We look forward to deepening this partnership to advance the UAE's strategic goals and further cement its growing status as a global leader in gender balance," she added. The Ministry of Economy further announced that the implementation of this decision will commence in January 2025, and urged private joint-stock companies to factor this requirement into their future board restructuring plans. This directive reflects the ministry's dedication to adopting global corporate governance best practices and ensuring that company boards represent all segments of society. In 2021, the Board of the UAE Securities and Commodities Authority (SCA) issued a landmark decision that mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have at least one woman board member. The latest decision of the Ministry of Economy to extend the requirement to private joint-stock companies further supports the UAE's vision to empower women and encourage them to play a greater role on the boards of listed companies.