The UAE Ministry of Economy has issued a new directive to reserve at least one board seat for women with the mandate set to take effect in January 2025. This initiative aims to boost gender diversity in leadership roles and promote inclusivity across the corporate landscape. Private companies are urged to factor this requirement into their future board restructuring plans following the completion of their current board terms.

This move builds upon a similar mandate applied to public joint-stock companies which has already shown significant success in improving institutional performance and economic outcomes.

The Ministry of Economy's decision is designed to draw on the unique insights and experiences of successful women in business, strengthening corporate governance and promoting the UAE's global competitiveness.

According to Abdulla bin Touq Al Marri, UAE Minister of Economy, this initiative recognizes the contributions of women to the nation's financial, business, and investment sectors, positioning them as key partners in economic growth.

The decision also aligns with efforts led by Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, whose initiatives aim to raise women's representation in leadership roles to 30% by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, emphasized that this mandate is a transformative step, reflecting the UAE’s long-standing commitment to gender equality.

In line with the country's broader gender diversity efforts, this decision underscores the dedication of leadership roles to increasing women’s participation in sustainable development. It also follows a 2021 regulation by the UAE Securities and Commodities Authority (SCA) which directed that public joint-stock companies listed on the Abu Dhabi and Dubai stock markets must have at least one woman on their boards. The extension of this requirement to private joint-stock companies is another significant step towards achieving gender parity in corporate governance and ensuring that women play an integral role in the nation’s future economic development.

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