Strengthening its commitment to gender equality in leadership positions, the UAE’s Ministry of Economy has mandated that private joint-stock companies allocate a minimum of one board seat for women. This initiative, part of a broader effort to enhance female representation in decision-making roles, aligns with the UAE’s goal to increase women’s participation in leadership positions to 30% by 2025. According to the latest statistics, women currently hold about 11% of board positions in UAE companies, highlighting the importance of this mandate in promoting greater diversity and inclusion in the corporate sector.

The new mandate will go into effect once the current board terms expire. 

The new directive adds to a similar mandate introduced for public joint-stock firms in 2021, which has generated positive results by improving institutional performance and economic outcomes. This follows the United Nations Development Program’s announcement of the UAE climbing to 7th place in the 2024 Gender Inequality Index, rising from 49th in 2015 to 11th in 2022. 

The UAE has been paving the way for gender equality. In 2015, it established its Gender Equality Council, a federal entity that seeks to develop and implement the gender equality agenda across the country.

Additionally, the country leads the world in women’s parliamentary representation, with women occupying 50% of positions in the Federal National Council. 

“The decision will reinforce the UAE’s vision to enhance gender balance, empowering women in the business sector and increasing their presence in leadership and decision-making roles,” said Abdullah bin Touq Al-Marri, the Minister of Economy.

“Today, women 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 added.

The implementation of the new mandate will commence in January 2025, with the ministry urging relevant companies to integrate this requirement into their future board restructuring plans.

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