A recent study reveals that UAE company boards are more frequently engaged in operational matters compared to their global counterparts. According to a report by Heidrick & Struggles, a leading provider of executive search and leadership services, 52% of directors in the UAE are more operationally involved on a regular basis—more than double the global average of 25% and the highest among the 20 markets surveyed.
The fourth edition of the Board Monitor report in the UAE highlights a global trend of expanding board roles, driven by higher stakes, increased uncertainty, and growing expectations. As these expectations rise, directors are navigating the increasingly blurred lines between oversight and management. 'Board involvement in operational business matters is notably more prevalent in the UAE and the GCC compared to several mature markets,' said Shaloo Kulkarni, partner at Heidrick & Struggles’ Dubai office. 'Driven by rapid growth and business transformation goals, boards are keen to delve deeper into daily operational details, seeking more involvement beyond formal board reporting.'
Key findings from the Board Monitor UAE 2024 include: 44% of appointments are non-national, 63% of appointments have cross-industry experience, and 91% of UAE leaders believe they should engage more with the workforce compared to 86% globally. Regulators in the UAE have seen the biggest increase in impact on boards post-Covid, at 57% compared to 45% globally.
The survey also indicates that UAE boards are spending significantly more time on emerging technologies, including AI (83%), surpassing global counterparts (71%). Other areas of focus include financial performance and risk (74%) and geopolitical volatility (67%).
Board diversity in the UAE is improving, with a notable increase in first-time board members and a stronger presence of women. 'We are witnessing a rising trend of young leaders and women joining boards,' said Maliha Jilani, partner at Heidrick & Struggles’ Dubai office. 'Boards in the UAE should capitalize on this momentum by enhancing their composition with demographic and experiential diversity.'
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