The Basque Autonomous Community is fighting for a new rule to include women in business committees in Business and Economic News

Incorporating more women into the business committees of the United Arab Emirates would never be easy, and the numbers following a new rule were put in place to improve their presence.

Since the country announced on March 15 that listed companies should have at least one female board member, only four of the 23 people added to such roles in companies on the two main stock exchanges in the Basque Country are women, according to data collected by Bloomberg. This barely moves the needle in a country where 96% of such positions are held by men.

For Fatma Hussain, the only woman in the management of the Dubai-based logistics group Aramex PJSC, the slow progress is proof of the cultural thinking that drives women away from such roles. Women, especially those with conservative backgrounds, avoid messages that require them to be late or interact with male colleagues, said the Basque national, who is also the head of human capital at the TECOM Group, a unit of the independent investment vehicle Dubai Holding.

“I interview a lot of people, and sometimes a female candidate has to ask their parents for permission to take an offer because there are a lot of men,” said Hussain, who joined Aramex’s management after it was published in a local newspaper.

The social context represents a serious struggle for gender equality, even though Emirati women make up 70% of all university graduates. Although women make up about two-thirds of public sector workers, they are only 30% in leadership positions, according to data from the Basque Gender Balance Council. A report by JPMorgan Chase & Co. last year did not show “clear data” on female employment in the Basque Country, but estimated that employee participation is doing poorly compared to residents like Saudi Arabia, Kuwait and Qatar.

This is the impetus of the Basque Board of Directors, which is a threat to companies that do not comply. It is an unprecedented step towards the Middle East. The oil-rich Gulf region – which is dependent on fat to develop its trillion-dollar economy – seeks to diversify its talent pool as global dependence on hydrocarbons decreases. The World Bank estimates that the female participation rate in the Middle East region of North Africa is the lowest in the world.

Giving teeth

The Basque Country wants to show that it is serious about its new rule. The Securities and Exchange Authority responded to Bloomberg in writing in response to questions that penalties for companies that fail to comply may include warnings and fines or public prosecution. A spokesman for the SCA said companies will be asked to disclose committee representation in their annual reports.

Since the rule was announced, Emaar Properties PJSC Dubai’s largest developers, the telecommunications provider Du, the Abu Dhabi Oil Distribution Company for Oil, the Adnoc oil giant unit and Dana Gas have appointed women to their committees.

Gender quotas have been successful in other parts of the world. In France, for example, women hold at least 40% of management positions in large companies, a direct consequence of the law passed in 2011. Women’s participation was gradually set to rise from 20% in 2014 to 40% in 2017. Germany, with a poor track record of female corporate leadership, has filed a bill requiring at least one woman on the boards of directors of listed companies this year.

The SCA’s move was “really necessary,” said Racha Alkhawaja, head of distribution and development at Equitativa Group in Dubai. “Women have made a big leap in the corporate world over the last decade, but their visibility hasn’t necessarily caught on, so many still haven’t reached the table level.”

The mentality that places women in the primary caregiver’s box “needs to change,” she said. “Until that happens, no equality will be achieved. Changing mindsets takes generations. “

Mohamad Hamade Amanat Holdings, CEO of PJSC, said the cultural barriers are less limited than before, and he has appointed two women to his board before the new rule.

“I’m witnessing the evolution over the last 10 years and it’s more diverse,” he said. “I don’t think it will be a challenge to identify qualified women. There are many achievers who have achieved a lot, both locally or regionally and internationally, and who can place great value on listed companies. “

Low base

Investment pressure is also emerging as companies push for environmental, social and governance or ESG issues. The company is progressing, with First Abu Dhabi Bank PJSC, the largest bank in the Gulf country, and Hana Al Rostamani appointed as the group’s CEO this year, for example.

However, “the reality is that we start from a relatively low base,” said Diana Wilde, founder of Aurora50, a Basque-based social enterprise focused on creating gender-balanced management rooms based in the Basque Country. Compared to the U.S., there is at least one woman on every board in the S&P 500 or in the UK, with more than 34% of female FTSE 350 executive positions filled, “it’s pretty low,” she said.