UAE to Require Women on Boards of Private Joint-Stock Companies by 2025

UAE Mandates Women on Boards of Private Joint-Stock Companies by 2025

The United Arab Emirates (UAE) has announced an important new mandate. Private joint-stock companies must reserve at least one seat for women on the board of directors by 2025. This action will take effect upon completion. Tenure of the present Board.

According to the UAE Ministry of Economy, the initiative, which will begin in January 2025, is a key component of the country’s broader strategy to increase diversity in the corporate sector and increase the representation of women in leadership roles. The Ministry has asked private joint-stock companies to include this requirement in future board restructuring plans.

A comparable strategy that was put into place for 137 public joint-stock businesses served as the foundation for the 2024 Ministerial Resolution governing the management and operations of private joint-stock enterprises. The Ministry said that the earlier directive has already yielded positive results and improved organizational performance and financial results.

The UAE’s goal of creating gender balance should guide the decision, according to Finance Minister Abdullah bin Tauq Al Marri. Women in the UAE have demonstrated their talents and made major contributions to the commercial sector over the past few decades. “Finance and investment today are essential partners in economic growth and vital to the UAE’s global competitiveness,” he stated..

Sheikha Manal bint Mohammed bin Rashid Al Maktoum, Chairman of the UAE Gender Equality Council, thanked her for her unwavering efforts to increase women’s participation in the economy. As part of a larger campaign to guarantee 30% women in leadership roles by 2025, important initiatives include the ‘Women on International Boards’ initiative and the ‘STG 5 Commitment to Accelerate Gender Balance in the UAE Private Sector’.

Mona Khanam Al Marri, Vice President of the UAE Gender Equality Council, highlighted the significant impact of the new decision on gender balance in the corporate sector and the importance of strategic cooperation between the Ministry of Economy and the Council.

The latest move follows a 2021 decision by the UAE Securities and Commodities Authority to require public joint-stock companies listed on the Abu Dhabi and Dubai stock exchanges to appoint at least one woman on their boards.EIH Ltd, the domestic luxury hotel chain behind the Oberoi brand, is exiting the United Arab Emirates (UAE) hospitality market, according to media reports. The decision means that the Oberoi Beach Resort at Al Zorah, located in Ajman, will no longer be managed by the Oberoi Group after terminating its contract with the local property owner. . The 89-room luxury property, known for its suites and villas, is set to be acquired by another international operator catering to high-end travelers.

The Al Zorah Resort, which is 30 minutes from Dubai, is a well-liked luxury tourist destination. Room prices range from AED 1,000 to AED 8,000 (Rs 22,000 to 1.8 lakh) per night.. The resort has performed well in recent months, with reports exceeding budget expectations, making it even more unexpected news for the group.

The management agreement between EIH Holdings Limited, a subsidiary of EIH Limited, and Al Zorah Development Pvt Co Limited will officially expire on February 28, 2025, a company spokesperson confirmed, Mint reported. Friendship too. “The Oberoi Group is committed to exploring new opportunities in this sector,” he said.
Vikramjit Singh, Managing Director and CEO of EIH Limited, made the surprise announcement at an emergency meeting at Oberoi Al Zorah on Wednesday. Speaking in front of the resort’s 400 employees, Oberoi shared the news of the end of the partnership with the property’s owner, Al Zorah Development Pvt Ltd, as reported by The Economic Times. Oberoi did not give specific reasons for the sudden decision, but assured the employees that their jobs would be secure under the new management.

Employees are shocked to see Oberoi’s sudden exit
Speaking to Mint, a resort employee said the news was shocking. “The trade budget has been beating expectations in recent months,” the official said. “We have been informed that the management will be handed over to another international operator within a few months. The owners have assured us that all employees will be retained, but we still feel insecure.
Employees want change, even when property owners have given them guarantees.
Regional initiatives by Oberoi Group
Oberoi’s existing involvement in the UAE comes to an end with the conclusion of the Al Sora acquisition, although the business has expressed a desire to keep playing a part in the expanding Western hospitality industry. The Oberoi Group can investigate new business opportunities in other industries as the luxury hotel market changes, upholding the brand’s reputation for first-rate service and gracious hospitality.