Women must be represented on private joint-stock companies’ board of directors, according to a new decision issued by the Ministry of Economy.
This will be implemented starting from January 2025. At least one seat must be allocated for women after the end of term of the current boards, according to the new decision.
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The decision aims to expand the presence and representation of women on the boards of directors of private joint-stock companies.
Representation of women in different institutions has always been a priority for the UAE. In 2018, Sheikh Khalifa bin Zayed Al Nahyan, the then-President of the UAE directed authorities to allocate 50 per cent seats for women in the Federal National Council. Women and men in the UAE must also be paid equally for the same job, as per a decree in 2020.
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.
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.
Abdullah bin Touq Al Marri, Minister of Economy, said: “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 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 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, said the ministry’s decision will have a significant impact on advancing gender balance, noting that women are “essential partners in the nation’s development across sectors”.
(With inputs from WAM)