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Women must be represented on private joint-stock companies' board of directors, according to a new decision issued by the Ministry of Economy. This will be implemented starting from January 2025. At least one seat must be allocated for women after the end of term of the current boards, according to the new decision.
Stay up to date with the latest news. Follow KT on WhatsApp Channels. The decision aims to expand the presence and representation of women on the boards of directors of private joint-stock companies.
Representation of women in different institutions has always been a priority for the UAE. In 2018, Sheikh Khalifa bin Zayed Al Nahyan, the then-President of the UAE directed authorities to allocate 50 per cent seats for women in the Federal National Council. Women and men in the UAE will also be paid equally for the same job, as per a decree by former president Sheikh Khalifa in 2020.
In 2024, women in UAE have been increasingly active in the commercial and business sector. As of August 2024, the Ministry of Economy announced that the total number of commercial licences owned by Emirati women reached 135,171 licences, an increase of 23 per cent from the end of 2023. The Ministerial Resolution No.
137 of 2024, which addresses the regulation of private joint-stock companies' governance and operations, follows a similar initiative previously applied to public joint-stock companies. In 2021, the Board of the UAE Securities and Commodities Authority (SCA) issued a landmark decision that mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have at least one woman board member. The latest decision of the Ministry of Economy to extend the requirement to private joint-stock companies further supports the UAE's vision to empower women and encourage them to play a greater role on the boards of listed companies.
Abdullah bin Touq Al Marri, Minister of Economy, emphasised that under the guidance of the UAE's wise leadership, the nation remains dedicated to strengthening women's contributions across various fields, especially in economic development. He said: "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.".
