UAE Leads GCC in Female Board Representation, Ranks 4th Globally
The UAE has emerged as the top-performing country in the GCC for female representation on corporate boards, securing the 4th position globally according to the latest BoardEx Gender Diversity Report 2024.
Key Findings
The report highlights the significant progress made by the UAE, positioning it as a leader within the Gulf Cooperation Council and among the top nations worldwide for gender diversity at the highest level of corporate governance. With approximately 13.4% female representation on corporate boards, the UAE significantly surpasses its regional peers. Globally, the UAE ranks 4th, trailing only a few European countries like France, Norway, and Italy known for strong diversity mandates. This ranking places the UAE above the global average board diversity of roughly 12.6%.
GCC Comparison
The report underscores a substantial gap in female board representation between the UAE and other GCC nations. Countries like Saudi Arabia, Kuwait, Oman, Bahrain, and Qatar show significantly lower percentages, often remaining below 5%. This stark contrast highlights the unique trajectory and impact of policies implemented in the UAE compared to the broader region.
Driving Factors and Initiatives
A primary catalyst for the UAE's leading position is its proactive approach to promoting gender balance. A key factor cited is the mandatory requirement for publicly listed companies in the UAE to appoint at least one female director to their boards. This policy, coupled with broader national initiatives by entities like the UAE Gender Balance Council and programs such as those supported by the Fatima Bint Mubarak Ladies Sports Academy (FBMA), has created a conducive environment for increasing female participation in leadership roles across various sectors, including business.
Significance for Business and Governance
Increased gender diversity on corporate boards is widely recognized for its positive impact on company performance, innovation, and governance. For startups and established businesses in the MENA region, the UAE's leadership in this area signifies a commitment to modern governance practices that can attract investment, enhance decision-making, and improve corporate reputation on a global scale. Promoting diversity is not just a social objective but is increasingly seen as a strategic business imperative.
Looking Ahead
The UAE's continued focus on gender balance, supported by data from reports like the BoardEx study, indicates a sustained commitment to increasing female representation in leadership. This trend is expected to influence corporate culture and governance standards across the region, potentially encouraging other GCC countries to adopt similar policies and initiatives aimed at fostering more diverse and inclusive boards.
Source: Fast Company Middle East