14/02/2016 05:46 AST
In a landmark decision, His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced this past Wednesday that five women ministers would be added to the UAE cabinet, bringing the total number of women to eight.
This puts the percentage of women ministers in the UAE cabinet at 27.5 per cent, up 10.5 per cent from the global figure of 17 per cent. The five new female ministers include Ohood bint Khalfan Al Roumi, who will be the UAE's first Minister of State for Happiness, and Shamma bint Sohail Faris Al Mazrui, the UAE's youngest minister at 22, who will be the new Minister of State for Youth Affairs.
The UAE's commitment to increasing the gender diversity in government will serve as a major source of inspiration for corporations across the UAE and wider GCC, demonstrating that increasing the gender balance will bring a wider array of talent, skills and energy to organisations and positively impact their overall success.
A recent study of Fortune 500 companies revealed that organisations with the highest proportion of female board directors outperformed those with the least by 66 per cent. Yet another 2015 report by accountancy firm Grant Thornton found that publicly-traded companies with no women on their board missed out on investment returns of over $620 billion in 2014.
The business case for gender diversity in leadership is clear: greater levels of diversity are linked to a positive impact not only on strategic decision making, but also on superior governance, better use of talent and a much closer understanding of target markets.
Challenges
The GCC remains one of the more challenging regions in the world for ambitious women, particularly for those hoping to make it to senior and board positions. Currently in Bahrain, 13 per cent of senior roles are held by women, while in the UAE, women account for 10 per cent of executive positions.
The Pearl Initiative's 2015 report, 'Women's Careers in the GCC: The CEO Agenda', found that although women in the GCC are ambitious high achievers, achieving a positive work-life balance and combining a high-powered career with family still proves challenging. A lack of female talent is not the issue. In fact, this is far from the truth.
Today, the GCC is making serious strides to increase both enrollment of women in tertiary education and their participation in the workforce. According to the World Economic Forum's 'Gender Gap Report 2014', the UAE, Bahrain, Qatar, Oman and Kuwait all outpace the global gender distribution rankings in terms of enrollment in tertiary education.
The challenge is no longer about attracting diverse talent - instead, the GCC's main task lies in retaining female employees and ensuring that there is constant potential for growth within organisations. Interestingly, many of the social and cultural barriers of the past have been extensively overcome.
Some 64 per cent of the women surveyed in the Pearl Initiative's report feel that society thinks it is acceptable for a married woman with children to work, discrediting the notion that a woman cannot both raise a family and follow a career.
Moreover, 71 per cent of the women surveyed feel that their families have been key motivators in their career progression. In the region, legislative bodies such as the Shura Council in Saudi Arabia and political bodies in the UAE are positively reinforcing the importance of women in the workforce. Hitting a glass ceiling However, this support must be translated into representation at senior levels. Some women leave the workforce midway through their careers, because they are not sure if they can achieve both personal and professional fulfillment.
Those women who stay on in the workforce find that they hit a glass ceiling, which makes it difficult to move on to senior positions. Companies in
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