UAE To Require Private Joint-Stock Companies To Have Women On Boards Of Directors
|The latest rule will be effective from January 2025.
UAE's Ministry of Economy has released a landmark ministerial decision mandating private joint-stock companies in the country to allocate at least one seat for women on their boards of directors. The latest rule will be effective from January 2025.
The Ministerial Resolution No. (137) of 2024 follows a similar initiative previously applied to public joint-stock companies. The latest decision is a significant component of the UAE's broader strategy to strengthen diversity in the corporate sector and increase women's representation in leadership roles. Meanwhile, the ministry also urged private joint-stock companies to factor this requirement into their future board restructuring plans. In 2021, the Board of the UAE Securities and Commodities Authority (SCA) issued a decision that mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have a minimum of one female board member.
“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," said Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, in the statement.