A groundbreaking decree in the UAE seeks to reshape the economic landscape by including more women in leadership roles.
- By 2025, UAE’s private joint stock companies are mandated to appoint at least one female board member.
- The decree aims to empower women economically and integrate their voices in corporate decision-making.
- All women in the UAE, regardless of nationality, are included, showcasing the country’s commitment to diversity.
- Companies must comply with this initiative or face scrutiny from regulatory bodies.
This pioneering decree introduced by the Ministry of Economy in the United Arab Emirates is set to transform corporate governance. By January 2025, all private joint-stock companies are required to include at least one woman on their boards. This effort aims to strengthen women’s roles in business and enhance their involvement in decision-making processes.
The decree is inclusive, extending its scope to all women residing in the UAE, whether they are citizens or expatriates. This inclusivity emphasizes the UAE’s dedication to recognizing and harnessing the potential of all women within its borders.
Women appointed to boards through this initiative will possess the same authority as their male counterparts. They will actively participate in strategic company decisions, oversee management performance, contribute to corporate policy-making, and protect shareholder interests.
To ensure successful implementation, the Ministry of Economy, along with other regulatory bodies, will monitor compliance. Mechanisms include auditing corporate reports to verify female representation on boards and imposing fines on non-compliant companies. Public lists will disclose companies adhering to or ignoring the decree.
Anticipated outcomes of this initiative include enriched diversity within company boards, leading to improved decision-making processes. This move is expected to encourage more women to enter the business sector, enhancing the UAE’s reputation as a leader in promoting gender equality.
This decree marks a strategic advancement towards sustaining a diverse and competitive economic environment in the UAE while elevating women’s roles in the corporate sector.
Source: Alsafarpartners
