The United Arab Emirates (UAE) has announced a significant new directive, mandating that private joint-stock companies must allocate at least one seat for women on their boards of directors by 2025. This move, announced on Wednesday, will take effect following the completion of the current board’s term.

According to the UAE Ministry of Economy, the initiative, set to begin in January 2025, is a key element in the nation’s broader strategy to enhance diversity in the corporate sector and boost women’s representation in leadership roles. The Ministry urged private joint-stock companies to factor this requirement into their future board restructuring plans.

Ministerial Resolution 137 of 2024, which governs the operations and governance of private joint-stock companies, builds on a similar initiative implemented for public joint-stock companies. The earlier directive has already produced positive results, improving institutional performance and economic outcomes, according to the Ministry.

Abdulla bin Touq Al Marri, Minister of Economy, emphasized the decision’s alignment with the UAE’s vision to promote gender balance. “Over the past decades, women in the UAE have consistently proven their capabilities, making significant contributions to the business, financial, and investment sectors. Today, they are indispensable partners in economic growth and vital to the UAE’s global competitiveness,” he said.

He also expressed gratitude to Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, for her unwavering efforts to increase women’s participation in the economy. Key initiatives like the ‘Women on International Boards’ programme and the ‘SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector’ are part of a broader push to ensure women hold 30% of leadership positions by 2025.

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Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, noted the importance of strategic collaboration between the Ministry of Economy and the Council, highlighting the significant impact the new decision will have on gender balance in the corporate sector.

This latest move follows a 2021 decision by the UAE Securities and Commodities Authority, which required public joint-stock companies listed on the Abu Dhabi and Dubai stock exchanges to appoint at least one woman to their boards.

(With inputs from PTI)