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Home » UAE Mandates Women’s Representation on Boards of Private Companies

UAE Mandates Women’s Representation on Boards of Private Companies

by Madaline Dunn

This week, the UAE Ministry of Economy issued a ministerial decision mandating that private joint-stock companies must increase women’s representation on boards.

The decision, which will come into force in January 2025, will require these companies to “allocate at least one seat” for women on their boards of directors after the completion of the current board’s term.

“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,” said Abdullah bin Touq Al Marri, Minister of Economy.

This move follows an earlier decision to require listed companies to mandate at least one woman on the board of directors, which was introduced back in 2021 by the Board of the UAE Securities and Commodities Authority (SCA).

According to research from Aurora 50, since its introduction, some progress towards better representation has been made. In the 2024 GCC Board Gender Index Report, released by the social enterprise alongside Heriot-Watt University, it was found that women now hold 10.8 per cent of board seats at publicly listed companies in the UAE, up from 8.9 per cent in 2022, and 3.5 per cent in 2020.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, commented: “This initiative not only advances social development but also contributes to raising the UAE’s status as a prominent global investment destination.”

Previous research, including from Cranfield School of Management, has found a positive correlation between higher levels of gender representation on boards and profitability and performance.

Indeed, when researchers from Cranfield assessed data from FTSE 100 firms, it was found that greater gender diversity on boards leads to both higher profitability and higher market valuations.

However, globally, representation remains low, with women holding just 23.3 per cent of board seats.

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