What the New UAE Law Means for Women on Corporate Boards

August 21 2025

Introduction

Board diversity has become a central topic in corporate governance debates worldwide. Gender representation, in particular, is recognized not only as an issue of equality but also as a driver of stronger decision-making, transparency, and long-term business performance. In the United Arab Emirates (UAE), regulators and policymakers have increasingly emphasized the importance of women’s participation in senior leadership roles, including on corporate boards. This article explores the current legal framework, recent progress, and future outlook for gender diversity in UAE boardrooms.

1. The Legal and Regulatory Framework

   The UAE has made significant strides in embedding gender diversity into its corporate governance system. In 2021, the Securities and Commodities Authority (SCA) issued a landmark decision requiring all listed companies in the UAE to have at least one female board member. This moved the country beyond a voluntary or “comply or explain” approach, establishing a mandatory baseline for representation.
   The move aligns with global best practices and reflects the UAE’s broader commitments under the UAE Gender Balance Council strategy, which seeks to place the country among the world’s leaders in gender equality by 2025. Beyond listed companies, state-owned enterprises and large private companies are increasingly encouraged, through both policy and soft law measures, to integrate women into board-level position

2. Progress and Impact

   Since the introduction of the SCA regulation, the number of women serving on boards of UAE-listed companies has steadily increased. According to SCA reports, women now hold more than 8% of board seats across listed firms, compared to less than 1% a decade ago. While this remains below the global average of approximately 20–25% in advanced economies, it marks a significant cultural and legal shift in the region.
   Research has shown that diverse boards bring multiple benefits, including broader perspectives in strategic planning, improved corporate governance, and stronger investor confidence. For companies seeking to attract international capital, especially from markets that prioritize ESG (Environmental, Social, and Governance) criteria, visible progress in board diversity is an important asset.

3. Challenges to Implementation

   Despite regulatory support, challenges remain in ensuring gender diversity is more than a box-ticking exercise. Cultural perceptions, limited female representation in executive pipelines, and the relatively small pool of women with board-level experience can slow progress. There is also the risk of “tokenism,” where women are appointed to fulfill regulatory requirements without being integrated into substantive governance roles.
   To overcome these challenges, companies must go beyond minimum compliance by investing in leadership development programs, creating mentorship opportunities, and broadening the criteria for board appointments.

4. The Way Forward

   The UAE’s commitment to gender diversity at the board level reflects its broader vision of economic modernization and international competitiveness. The momentum is expected to continue, with more women taking on influential roles in listed and private companies. As regional peers in the GCC explore similar measures, the UAE is positioning itself as a leader in progressive corporate governance.

Conclusion

Gender diversity on corporate boards in the UAE is no longer a matter of voluntary choice but a regulatory requirement that brings both reputational and practical benefits. Companies that embrace the change proactively will gain a competitive edge, both locally and internationally.
At MIS Consultants, we support clients in meeting these evolving governance obligations by advising on compliance with SCA regulations, structuring board appointments in line with best practices, and helping organizations integrate diversity into their corporate governance frameworks in a meaningful and sustainable way.

References

1. Securities and Commodities Authority (UAE), Board of Directors’ Decision No. 3/2020 on Corporate Governance.
2. UAE Gender Balance Council. (2021). Gender Balance Strategy 2026.
3. Securities and Commodities Authority Annual Reports (2022–2024).
4. International Finance Corporation (IFC). (2021). Women on Boards in the Middle East and North Africa: Pathways to Progress.
5. OECD. (2022). Boardroom Gender Diversity and Corporate Governance Trends.