In recent years, the GCC region has witnessed a significant transformation in business leadership, notably with women’s increased participation and influence. As the nations of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE ambitiously pursue economic diversification, moving away from traditional oil dependence, one might ask: What makes the participation of women in leadership positions so pivotal at this juncture?
Could this evolution in leadership dynamics signal a more profound transformation within the GCC’s corporate and socio-economic framework? More importantly, how are these women leaders redefining the paradigms of success and innovation in a region so highly exposed to global economic influence?
Embracing diversity, driving innovation
The Middle East has witnessed significant strides in advancing gender equity in the workforce, with women increasingly taking on active private and public roles. This shift reshapes workplaces across the region and is part of a broader effort to close the gender gap.
Women’s leadership is not merely transforming the business landscape; it’s also refining the process and ethos behind our decision-making. With a natural inclination towards empathy, inclusivity and sustainability, women leaders tend to weigh business decisions’ social and environmental impacts more carefully with a direct positive effect on Environmental, Social, and Governance (ESG) criteria. By integrating their unique perspectives, experiences and skills, women in leadership can make more inclusive decisions. Their leadership connects business strategies with real-world implications, ensuring that actions taken are beneficial not only for the business but also for the broader community and environment.
In parallel joining efforts, governments have set ambitious goals, and a growing number of organisations are prioritising gender diversity, reflecting the region’s unique cultural and societal context. Last year, on the occasion of Emirati Women’s Day, HH Sheikha Fatima bint Mubarak, Chairwoman of the General Women’s Union (GWU), President of the Supreme Council for Motherhood and Childhood, and Supreme Chairwoman of the Family Development Foundation (FDF), launched the National Strategy for Empowerment of Emirati Women in the UAE for the years 2023-2031, aimed at achieving fair and comprehensive women’s participation in all fields, enhancing the quality of life in society, and promoting the efforts of women’s empowerment and leadership in the UAE.
Furthermore, initiatives such as the UAE’s Women on Boards initiative and Gender Balance Council aim to enhance women’s workforce participation and leadership roles, reflecting a broader recognition of the economic and social benefits of gender equity.
The question now becomes how the private sector can play its part in embracing diversity and driving innovation.
Challenges and opportunities ahead
Despite these efforts, women hold approximately 7% of board seats in the Gulf Cooperation Council (GCC) countries, compared to a global average of 20%, indicating a substantial gap in leadership positions. Challenges such as gender bias, stereotypes, and inadequate support for work-life balance hinder women’s advancement in corporate leadership within the region. Yet, increasing women’s representation in the workforce, particularly in leadership roles, is key to improving business outcomes, with organisations experiencing significant benefits when women constitute at least 30% of the leadership roles.
Both locally and globally, women continue to be underrepresented in leadership positions across various sectors, especially in STEM. The Global Gender Gap Report 2023 by the World Economic Forum revealed that the proportion of roles held by women falls dramatically from entry-level positions to the C-suite, where it drops to 25%. In STEM roles, it decreases even further to 12%.
Women in the Middle East are also facing underrepresentation in the finance sector, signalling an imbalance where their involvement remains peripheral. For instance, only 12% of senior management roles in banking are occupied by women, underscoring the significant gender disparity at the leadership level within the sector. In the corporate sector, women hold less than 20% of CFO positions.
The public and private sectors must continue to implement policies and practices that support the advancement of women in the workforce. This includes addressing the gender pay gap, providing flexible working arrangements, and creating an organisational culture that values diversity and inclusion. We have consistently scored higher than the gender equality index (GEI) average and marked significant progress on equal pay and gender pay parity.
Women’s empowerment is an integral part of our business; our efforts focus on building diverse teams at every level, with significant representation of women across different roles within the organisation. As of December 2022, our company globally has achieved a composition of 34% women among its employees, 41% in its executive committee, and 45% in our board of directors.
A cornerstone of our approach is the emphasis on mentorship, mainly through programs Schneider Electric offers to women in the early stages of their careers and those in mid-management. This mentorship is critical, serving as a bridge that connects ambitious women with the resources, knowledge, and networks necessary to navigate their professional journeys successfully.
However, mentorship alone does not suffice. Recognising the unique challenges working mothers face, it is crucial for both the public and private sectors to prioritise investments in programs that support their return to the workforce. This includes forecasting and planning for pay equity and enhancing benefits specifically tailored to the needs of working mothers. Such programs are not mere acts of benevolence; they are strategic investments in the future of our workforce, ensuring that we do not lose invaluable talent due to temporary life changes.
The way forward
The change in leadership dynamics within the GCC indicates a broader, more profound transformation in our corporate and socio-economic landscape. Women in leadership positions contribute to the region’s economic growth and challenge and redefine the traditional paradigms of success and innovation. As industry leaders, we are responsible for championing these changes, not only within our organisations but across the entire business ecosystem.
