Women’s Leadership Takes Center Stage: UAE Mandates Female Representation In Private Company Boards
In a push for diversity, the UAE decided to make a change in who will lead any private company in the Emirates. The country wants every private company in the UAE to have at least one woman as a member of their board of directors.
Why The New Policy?
The UAE’s Ministry of Economy spoke up about the major decision in a statement, “This decision is a vital component of the nation’s broader strategy to enhance diversity in the corporate sector and increase women’s representation in leadership roles.”
The entire idea is to empower women and have them earn a spot and be major contributors to the country’s sustainable development.
The History of the Policy
In 2021, the UAE’s Securities and Commodities Authority (SCA) mandated that public companies listed on the ADX and DFM must include at least one woman on their board of directors.
Now, the push is for private companies to do the same. This new policy will be implemented in January of next year. Ahead of the new mandate being applied, several companies and business groups in the private sector have already brought in women’s representation on their boards.
The Future
Once the policy and mandate are applied, according to Abdulla bin Touq Al Marri, the AE Minister of Economy, “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.”
