Since January 2025, the United Arab Emirates has required private joint-stock companies in the country to allocate at least one seat on the board of directors to a woman upon the conclusion of the current board’s term, under the Ministry of Economy’s Ministerial Decision No. (137) of 2024. The decision aims to foster a more inclusive corporate culture while promoting gender balance in executive and decision-making positions, in line with the UAE’s Gender Balance Council Strategy 2026. (Decision, art. 63(3).)
Exemptions from the Gender Diversity Requirement
Several businesses are exempt from this requirement, including finance companies, financial investment companies, exchange companies, and monetary brokerage companies regulated by the Central Bank. Additionally, branches and representative offices of foreign companies, as well as companies operating under free zone regulations friendly to foreign businesses, are also exempt. (Art. 62(2).)
Building on Previous Governance Reforms
Ministerial Decision No. (137) of 2024 builds on the reform introduced by the Securities and Commodities Authority in Decision No. (3/Chairman) of 2020, as amended, which mandated that at least one woman be represented on the boards of public joint-stock companies starting in 2021. Companies are also required to disclose this representation in their annual governance report. (Art. 9(3).) This decision played a pivotal role in achieving a 200% increase over three years in women’s representation on the boards of UAE public joint-stock companies.
Prepared by Muneera Al-Khalifa, Scholar-in-Residence, under the supervision of George Sadek, Foreign Law Specialist
Law Library of Congress, December 2, 2025
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