A Compliance Guide for the New Gender Diversity Rules in UAE

The UAE’s new requirement for mandatory female representation on the boards of private joint-stock companies, which comes into effect on January 1, 2025, is a major change for the corporate landscape. All private joint-stock companies in the UAE will need to take action to ensure that they are compliant with the new rules. This guide provides a practical compliance checklist to partner with you to prepare.

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The Challenge: A New and Unfamiliar Regulatory Requirement

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The new mandatory requirement for female representation on boards is a new and unfamiliar regulatory requirement for many businesses in the UAE. This can make it challenging to know where to start and how to ensure that you are fully compliant. This guide is designed to partner with you to navigate the new rules and to develop a clear and effective compliance plan.

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The legal framework: A Proactive and Systematic Approach to Compliance

The key to a smooth transition to the new rules is to take a proactive and systematic approach to compliance. By starting now, you can ensure that you have plenty of time to understand the new requirements, to identify any gaps in your current board composition, and to take the necessary steps to comply.

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Your Compliance Checklist

1. Understand the New Requirements

• [ ] Do you understand the new mandatory requirement for female representation on the boards of private joint-stock companies?

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• [ ] Do you know when the new requirement comes into effect (January 1, 2025)?

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• [ ] Do you know what the minimum requirement is (at least one female director)?

2. Review Your Current Board Composition

• [ ] How many directors are on your board?
• [ ] How many of your directors are female?
• [ ] If you do not currently have any female directors, you will need to appoint at least one before January 1, 2025.

3. Identify and Recruit Qualified Female Candidates

• [ ] Have you started the process of identifying and recruiting qualified female candidates for your board?
• [ ] Have you considered using a professional search firm to partner with you to identify a diverse pool of candidates?
• [ ] Have you reviewed your board’s skills matrix to identify any gaps that could be filled by a new female director?

4. Amend Your Corporate Governance Documents

• [ ] Do you need to amend your company’s memorandum and articles of association to reflect the new requirement for female representation on the board?
• [ ] Do you need to update your board’s charter or terms of reference?

5. Report on Your Progress

• [ ] Are you aware of the new requirement to report on the gender balance of your board in your annual governance report?
• [ ] Have you put in place a process for collecting and reporting this data?

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Conclusion: An Opportunity to Strengthen Your Board

The new mandatory requirement for female representation on boards is not just a compliance exercise; it is also an opportunity to strengthen your board. By appointing a qualified female director, you can bring new perspectives and skills to your board and can improve your company’s decision-making and performance. All private joint-stock companies in the UAE should embrace this opportunity to build a more diverse and effective board.

At Nour Attorneys Law Firm, we can provide expert advice on all aspects of the new mandatory requirement for female representation on boards. We can partner with you to understand your obligations, to identify and recruit qualified female candidates, and to amend your corporate governance documents. Contact us to ensure that you are fully compliant with the new rules.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on the content of this article.

Nour Attorneys Team

Additional Resources

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