UAE private companies must have at least one woman on their board of directors
UAE mandates this rule comes into effect after current board completes term
Dubai: Privately owned companies in the UAE need to have at least one woman as a member of their board of directors, according to the Ministry of Economy. This must be done after the completion of the current term of any company's board.
"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," said a statement from the Ministry. "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."
It was in 2021 that the UAE's Securities and Commodities Authority (SCA) first issued the mandated for public companies listed on ADX and DFM to have at least one woman board member.
The latest decision comes into effect January next. Private joint stock companies will have to 'factor' this requirement into 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," the statement added.
Even ahead of the new mandate, some of the biggest business groups in the local private sector have brought in women representation on their boards. This has also been helped by generational transitions at several family businesses.
"Women in the UAE have consistently proven their capabilities, making significant contributions to the business, financial, and investment sectors," said Abdulla bin Touq Al Marri, the AE Minister of Economy. "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.”