UAE Requires Women on Private Company Boards by 2025
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UAE Announces Mandatory Women Representation on Boards of Private Firms by 2025

Women must now be represented on the boards of directors of private joint-stock companies, as per a recent decision from the Ministry of Economy.

This mandate will take effect in January 2025, requiring that at least one seat be reserved for women following the expiration of the current boards’ terms.

The decision’s purpose is to strengthen women’s presence and influence on the boards of private joint-stock companies.

Women’s representation across various institutions has always been a top priority for the UAE. In 2018, the late Sheikh Khalifa bin Zayed Al Nahyan, then-President of the UAE, instructed authorities to ensure that women occupy 50% of the seats in the Federal National Council. Moreover, in 2020, a decree was issued mandating equal pay for women and men performing the same job in the UAE.

The new Ministerial Resolution No.137 of 2024, which governs the operations and regulations of private joint-stock companies, mirrors a similar initiative previously enacted for public joint-stock companies.

In 2021, the UAE Securities and Commodities Authority (SCA) Board passed a landmark decision that required public joint-stock companies listed in the Abu Dhabi and Dubai stock markets to have at least one woman board member. This latest move by the Ministry of Economy extends the requirement to private joint-stock companies, furthering the UAE’s efforts to empower women and enhance their participation in corporate governance.

Abdullah bin Touq Al Marri, Minister of Economy, emphasized that this decision will bring valuable benefits to private joint-stock companies, improving their institutional performance by leveraging the insights and expertise of accomplished businesswomen in the UAE.

He also expressed sincere appreciation for Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council and wife of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, for her continuous efforts to boost women’s participation in the economy.

Her initiatives aim to increase women’s representation in leadership roles to 30% by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, noted that this decision by the ministry will significantly advance gender balance, acknowledging that women are “critical partners in the nation’s development across all sectors.”

 

Publish 19 Sep 2024

Source: https://www.khaleejtimes.com/uae/uae-announces-women-mandatory-on-board-of-directors-for-some-firms-from-2025

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