In a historic move for gender diversity, towards the end of last year the UAE mandated all private joint-stock companies to appoint at least one woman to their boards, starting from January 2025. This decision extends the 2021 requirement for public joint-stock companies and represents a major step in the UAE’s commitment to advancing women in leadership roles.
‘This mandate is a pivotal step for the UAE’s business community,’ says Nadine Halabi, head of business development at the Dubai Business Women Council. ‘Having at least one woman on the board brings diverse perspectives and helps drive more balanced decision-making, which is key to both innovation and growth. It’s not just a win for women – it’s a win for businesses.’
‘Different perspectives help identify unique solutions to complex problems’
A wealth of research has demonstrated that gender-diverse leadership makes companies more competitive, innovative and resilient. Cynthia Corby, partner at Deloitte Middle East and chair of the UAE Women in Finance Forum, lists some of the advantages: ‘A diverse board brings a wide range of viewpoints and experiences, leading to more comprehensive discussions and better-informed decisions. Different perspectives can help identify unique solutions to complex problems. A diverse board also leads to more rigorous oversight and governance, by reducing the risk of groupthink, and can foster an inclusive organisational culture, helping to attract and retain top talent from diverse backgrounds.’
Diversifying hiring
The talent pipeline is a considerable challenge to compliance with the new mandate, particularly for businesses that operate in sectors with historically low female representation. ‘One of the primary issues is the availability of qualified female candidates with the experience and skills to serve on boards,’ says Corby. ‘Companies that have traditionally relied on male-dominated networks for leadership recruitment may need to diversify their hiring practices.’ Cultural and societal resistance to women in leadership roles could also hinder implementation.
Suzanne Locke, content strategist at Aurora50, a Middle East-based diversity, equity and inclusion agency, says that broadening networks and including female voices is essential to creating a more balanced leadership structure. ‘The challenge is that boards and nomination committees often don’t know about the talented women in the UAE. Too many of these women simply aren’t in their circles.’ She advocates combining proactive mentorship and targeted development to identify and prepare more women for board roles.
Corby warns that compliance-driven tokenism may be a problem. ‘The 30% threshold is often a pivotal point,’ she says. ‘Research suggests that it gives enough critical mass to influence decision-making processes effectively. Below this threshold, minority members may struggle to have their voices heard and their perspectives considered.’
Locke believes male leaders can play a critical role. ‘Male executives can be great allies to senior-level women by mentoring them, giving them board exposure, and nominating them when seats open up,’ she says.
‘Gender biases in hiring and promotion need to be actively addressed’
National commitment
The UAE’s recent mandate aligns with its broader goals for gender parity and inclusivity. Today, women hold 50% of seats in the UAE’s parliamentary body, the Federal National Council, and occupy 10.8% of board positions in publicly listed companies, up from just 3.5% in 2020. These achievements reflect both government support and a societal shift.
Corby points out that, over the years, there has been a noticeable shift in the landscape for women in business leadership in the UAE. It has been supported by the country’s rulers, who have appointed female ministers to high-profile roles to lead major agenda items, and created a UAE Gender Balance Council. Increased access to education and professional development for women has also contributed to a more qualified female workforce.
The journey toward true gender diversity demands a shift not just in policy but also in corporate culture. Sara Minelli, a partner at Bain Middle East, says: ‘The UAE’s progress has been powered by government policies, but the private sector’s response has been vital to ensuring inclusive practices.’ For sustained progress, she recommends policies that support women at all career stages, such as flexible work arrangements and targeted leadership programmes.
Minelli says that success will depend on building a robust female talent pipeline to ensure that women executives with board-level experience are available to fill the mandated positions in male-dominated industries. ‘Gender biases and stereotypes in hiring and promotion decisions need to be actively addressed to enable equal opportunities for women to reach the top,’ she adds.
‘Gender diversity is a business imperative for the future of the UAE’
Strategic step
The UAE is demonstrating that inclusive leadership isn’t just a policy but a powerful driver of growth and innovation. Halabi sees the mandate as a cornerstone of the UAE’s vision for sustainable economic development. ‘It’s about tapping into the full potential of all leaders to drive sustainable business success,’ she says.
‘It sets a positive example for other countries in the region and can attract international investors who value diversity,’ says Corby, while Locke adds: ‘Gender diversity is a business imperative for the future of the UAE.’
Tipping the gender balance
The UAE Women in Finance forum has embraced several initiatives to promote diversity:
- Mentorship programmes to connect aspiring female leaders with experienced mentors who can provide guidance and support.
- Leadership training focused on developing skills and confidence in women to put themselves forward for leadership roles.
- Networking events that allow women to share experiences and build professional relationships that result in referrals for board and leadership roles.
- Advocacy and awareness-raising about the benefits of gender diversity in the finance industry.
- Research and data to highlight the business case for gender diversity and track progress over time.