• The UAE continues to lead the charge in gender balance and corporate diversity with its latest initiative targeting the private sector. Starting in January 2025, a groundbreaking mandate from the UAE Ministry of Economy will require private joint-stock companies to have at least one woman on their board of directors. This decision not only underscores the nation's commitment to gender equality but also aligns with global efforts to enhance corporate governance through diversity.

• Why This Mandate Matters

• The presence of women in leadership roles is no longer just a question of social justice—it’s a matter of economic and corporate success. Studies consistently show that companies with diverse boards are more innovative, better at decision-making, and tend to outperform less diverse organizations. With this new requirement, the UAE positions itself as a leader in promoting gender balance, especially within the business sector.

• The Ministry of Economy’s mandate is part of a broader strategy, following the 2021 decision that required public joint-stock companies to include women on their boards. The goal is clear: by 2025, 30% of board seats in the UAE should be held by women. This new mandate brings the private sector in line with this vision, empowering women to contribute to sustainable economic growth.

• Aligning with UAE’s Vision for Global Competitiveness

• This decision also ties into the UAE’s ambition to enhance its global competitiveness rankings. Corporate diversity is not just about social responsibility; it’s a key driver of innovation, efficiency, and competitiveness in the modern economy. By opening boardrooms to more women, private companies are likely to benefit from a broader range of perspectives, which is essential for navigating today’s complex business challenges.

• Next Steps for Private Joint-Stock Companies

• Private joint-stock companies are now tasked with ensuring that their next board restructuring includes at least one woman. This will require careful planning, especially for companies that may not have considered female representation a priority. However, this change is not just about compliance—it’s an opportunity for these companies to rethink their leadership strategies and incorporate a more inclusive approach.

• The Road Ahead: Empowering Women and Businesses

• The UAE has consistently been at the forefront of empowering women in the workplace, and this new directive continues to build on that foundation. Initiatives like Sheikha Manal’s "Women on International Boards" program and the SDG 5 Pledge aim to bolster female participation across industries. This mandate will serve as a key tool in achieving the country's ambitious goals for gender balance in leadership by 2025.

• As companies prepare for this change, they are also aligning with the future of business—a future where diversity, equity, and inclusion are central to corporate success.

Starting January 2025, the UAE Ministry of Economy has mandated that all private joint-stock companies must include at least one woman on their board of directors. This directive is part of the country's broader strategy to promote gender balance and diversity in corporate governance. It builds on previous initiatives, such as the 2021 mandate for public joint-stock companies, to increase female representation in leadership roles.

The inclusion of women on boards is aimed at improving corporate performance, governance, and innovation, as research shows that diverse boards tend to perform better. Companies are expected to integrate this requirement into their future board restructuring plans as part of the UAE’s commitment to enhancing global competitiveness and supporting women's contributions to sustainable economic development​(ME Briefing)​(Gulf Business).