UAE to Mandate At Least One Woman on Company Boards Starting January 2025

In a significant move towards gender diversity in corporate leadership, the United Arab Emirates (UAE) Ministry of Economy has announced a new regulation requiring public and private companies to have at least one woman on their board of directors. This mandate is set to take effect from January 2025, marking a pivotal shift in the country's corporate governance landscape.

Key Points of the Mandate

• Scope: The regulation applies to all public and private companies operating in the UAE.
• Requirement: Each company must have a minimum of one female board member.
• Implementation Date: The mandate comes into force on January 1, 2025.
• Compliance: Companies will have a specified period to comply with the new regulation.

Objectives and Implications

This groundbreaking initiative aims to:

1. Promote Gender Diversity: Ensuring female representation at the highest levels of corporate decision-making.
2. Enhance Corporate Governance: Diverse boards are often associated with improved governance and decision-making processes.
3. Boost Economic Participation: Encourage greater involvement of women in the UAE's economic development.
4. Align with Global Trends: Position the UAE as a progressive nation in line with international corporate governance best practices.

Current State and Challenges

As of 2024, women's representation on corporate boards in the UAE, while improving, still lags behind global benchmarks. This mandate seeks to address:

• The underrepresentation of women in leadership roles
• Cultural and societal barriers to women's advancement in the corporate world
• The need for a more inclusive business environment

Implementation and Support

To facilitate this transition, the UAE government is expected to:

• Provide guidance and resources to companies for identifying qualified female candidates
• Collaborate with business schools and professional organizations to develop a pipeline of board-ready women
• Offer training programs to prepare women for board positions

Global Context

The UAE's move follows similar initiatives in other countries:

• Norway was the first to introduce board gender quotas in 2003
• Several European countries, including France, Germany, and Italy, have implemented similar measures
• In the Middle East, Egypt introduced a requirement for at least one woman on boards in 2020

Conclusion

This landmark decision by the UAE demonstrates a commitment to gender equality and recognizes the value of diverse perspectives in corporate leadership. As companies prepare for the 2025 implementation, the business landscape in the UAE is poised for a significant