Board diversity in the UAE is on an encouraging upward trend, marked by a notable rise in first-time board members. Among these new appointees, women make up a significant one-third, highlighting a commitment to inclusivity. Globally, there’s a shared understanding that the role of boards is evolving. As expectations heighten amid greater uncertainties, directors find themselves navigating a complex landscape where the lines between oversight and management often blur. This shift underscores the growing importance of effective governance in today’s fast-paced environment.
According to the latest Board Monitor report by Heidrick & Struggles, a leading firm in executive search and leadership development, boards in the UAE are becoming more engaged in their operations. They’re increasingly focusing on emerging technologies, such as artificial intelligence, more so than their counterparts around the world.
The survey highlighted a significant trend among boards in the UAE: they’re dedicating more time to emerging technologies, especially artificial intelligence (AI). An impressive 83% of UAE boards are engaging with AI, surpassing the global average of 71%. This focus on technology is accompanied by a keen interest in financial performance and risk management, with 74% of boards prioritizing these areas. Geopolitical volatility is also on their radar, with 67% of board members dedicating time to understanding its impacts.
Interestingly, a recent report from IBM noted that the UAE ranks second worldwide for the active use of AI, with 58% of leaders employing the technology, just behind India at 59%. This underscores the urgent need for UAE leaders to consider how disruptive technologies like AI will transform various industries in the region. As these changes unfold, staying ahead will be crucial for effective governance and strategic planning.
“We are seeing a rising trend of young leaders and women joining boards, and boards in the UAE should build on this momentum by continuing to strengthen their composition with demographic and experiential diversity. Bringing younger talent onto boards not only bolsters succession planning but also addresses issues like overboarding. Boards could also explore options like apprentice or shadow boards to help younger leaders develop the skills needed to be effective. Additionally, boards can broaden their expertise by tapping into advisory committees, independent advisors, external consultants, and on-demand talent platforms, ensuring they have the diverse and evolving skills required to govern in this dynamic landscape,” said Maliha Jilani, Partner in Heidrick & Struggles’ Dubai office and Social Impact Practice lead in the Middle East and North Africa region.
“Board involvement in business operational matters is relatively more prevalent in the UAE and the GCC when contrasted with several other more mature markets. Driven by rapid growth and business transformation targets, boards have an appetite to delve deeper into day-to-day operational matters, seeking more details and involvement beyond formal board reporting. Non-executive directors and board advisors often bring specialized knowledge that the executive team may still be building, and hence, a deep partnership and engagement model between the board members and the executive management is leveraged to steer companies toward their future business vision,” said Shaloo Kulkarni, Partner in Heidrick & Struggles’ Dubai office and Heidrick Consulting in APAC & EMEA.
