The United Arab Emirates, home to Dubai and Abu Dhabi stock exchange, will require a minimum of one female director on the boards of all noted business, as companies worldwide face pressure to enhance gender diversity.The requirement entered force after the Securities and Commodities Authority’s meeting on Sunday, according to the National paper, which cited the market regulator.The 5 biggest companies noted on Dubai Financial Market PJSC and the Abu Dhabi Securites Exchange have 84 board members, but just three ladies, according to data on the exchange websites.”We formerly utilized to accept explanations if there wasn’t compliance, and now we are moving to make female representation compulsory,” the regulator’s President Obaid Saif Al Zaabi was priced estimate as saying by the National. “So now there must be at least one female member on the board of any listed business.”The UAE’s reserve bank has already signed a memorandum of understanding with Aurora50, a firm concentrated on gender-balanced boardrooms, to pursue raising the variety of ladies on the boards of both public and private companies in the country.The area has “come a long way in the previous years,” said Racha Alkhawaja, Dubai-based group chief circulation and development officer at Equitativa Group and the choice to bring at least one female on boards of listed business “comes under the whole topic of quotas.”
While ladies exist on the boards of 28 out of 110 noted business in the UAE, they comprise just 3.5% of all board positions, according to information assembled by Aurora50.
“Quotas at this early stage might be necessary to make sure that business do the additional effort in finding those females,” Alkhawaja stated. “There are still a lot of females that are undetectable. They exist, they do actually well, they’re very senior, they’re extremely prominent, however are still unnoticeable.”In India, where a law passed in 2013 makes it mandatory for companies to have at least one female board member, women held 17% of the positions, Aurora50 said. France had the highest portion of females on boards in 2020, with 43.6%, according to information gathered by BoardEx.In the UAE, the regulator has not yet made it mandatory for listed firms to reveal equality and social governance metrics, but has actually recently motivated business to start reporting.