UAE’s latest directive to ensure gender equality in leadership roles

The UAE has made it compulsory for its Private firms and joint stock companies to reserve at least one seat in the board of directors for women candidates, reinforcing its commitment to gender equality in leadership roles.

The Ministry of Economy issued this directive that will come into effect once the current board terms expire, aligning with the Emirates’s goal of enhancing global competitiveness. The initiative highlights the leadership’s dedication to empowering women and advancing the SDGs mentioned in the United Nations Charter.

The ministerial resolution that regulates the governance and operations of private companies is built upon a similar mandate for public joint stock companies that was passed in 2021. The earlier measure resulted in yielding positive results by improving institutional performances and economic outcomes.

According to the UN Development Programme, the United Arab Emirates is ranked at the 7th place in the 2024 Gender Equality Index, a significant rise from the 49th in 2015 and 11th position in 2022. This announcement by the United Nations was made during the 68th session of the Commission on the Status of Women in New York.

In 2015, UAE established its Gender Balance Council, a federal entity tasked with developing and implementing the gender equality agenda. The council aims to close the gender gap across all government sectors positioning the UAE as a global model for equality.

The country also leads the world in women representation in the parliament with women occupying half of the seats in the Federal National Council. They are also represented well in the labour market, specialised professions, and emerging fields according to the Emirates government portal.

The ministry has announced that the implementation will begin from January 2025 and urged relevant companies to integrate this requirement into the future board restructuring plans as soon as possible.