Egypt Launches First-Ever ERA Pledge Initiative to Promote Gender Equality in Arbitration

For Empowering women in financial sectors, the Chairman of the Financial Regulatory Authority (FRA) and Chairman of the Egyptian Center for Arbitration and Non-Banking Financial Dispute Resolution, Mohamed Fares, joined Baker McKenzie, the international law firm, to launch the Equal Representation in Arbitration (ERA) Pledge initiative for the first time in Egypt. The launch marks a significant milestone in efforts to promote gender equality in arbitration and dispute resolution within the country’s rapidly evolving non-banking financial sector.

Founded in 2015 by a group of international legal professionals, the ERA Pledge is a global initiative aimed at increasing the representation of women in arbitration bodies. The pledge encourages firms, institutions, and companies to adopt policies that prioritize gender diversity in arbitration processes, both as part of corporate governance and as a commitment to equality in dispute resolution. To date, the pledge has garnered the support of over 5,000 signatories worldwide, including corporations, law firms, and individuals.

Fares, a vocal advocate for empowering women in the financial and legal sectors, expressed his pride in Egypt’s participation, calling the launch a pivotal step toward advancing women’s roles in arbitration, a traditionally male-dominated field. “This initiative is not just about fair representation, it’s about recognizing the invaluable contributions women make to the legal profession and ensuring they have a seat at the table,” he said.

Fares highlighted that the launch of the ERA Pledge aligns with the FRA’s broader commitment to empowering women and fostering gender diversity across all sectors under its supervision. Over the past year, the authority has made significant strides in increasing the representation of women in corporate boards. In 2023, the number of women serving on boards across the FRA-regulated entities reached 1,072, up from 920 in 2022. This represents a 16% increase in just one year and exceeds the FRA’s own target of 25% female representation.

Moreover, nearly half of the companies in Egypt’s non-banking financial sector now boast at least two women on their boards, a clear indication that gender diversity is becoming the norm rather than the exception. Fares emphasized that these gains reflect the FRA’s steadfast dedication to gender parity. “This is more than just a numbers game. It’s about fostering inclusive environments where women can contribute to decision-making and leadership,” he said.

According to Fares, the capital markets sector has seen the most significant progress, with women now representing 25.7% of board members, the highest percentage among all sectors regulated by the FRA. Close behind are the microfinance, small and medium-sized enterprises (SMEs) financing, real estate financing, leasing, and factoring sectors, all of which have seen their female board representation rise to 25.1%.

This surge in female representation is particularly notable given the often conservative nature of financial markets, suggesting a fundamental shift in how companies in Egypt are thinking about leadership and governance.

Fares also stressed that empowering women goes beyond representation. The FRA is focused on equipping women with the financial knowledge and tools they need to succeed, particularly when it comes to non-banking financial services. One area of focus is long-term investment in the stock market, which can help women build financial independence and secure their futures.

“Financial inclusion and literacy are key to empowering women,” Fares explained. “Our goal is to help women understand and navigate the full spectrum of non-banking financial services, so they can make informed decisions about their finances and investments.”

In addition to working with multilateral development partners to drive financial inclusion, the FRA is also committed to fostering a work environment that encourages the professional development of women within its own ranks. As of 2023, women represent 35% of the FRA’s workforce, and 65% of new hires at the authority are women.

The ERA Pledge launch also saw the participation of numerous private sector entities, with 50 companies and institutions publicly committing to uphold the principles of the pledge. Marian Qaldas, Executive Director of the Egyptian Center for Arbitration and Non-Banking Financial Dispute Resolution, stated that these companies would now formally integrate gender parity policies into their arbitration processes and broader governance practices.

“By signing the ERA Pledge, these companies are not only committing to fairness but are setting a strong example for the wider business community,” Qaldas said. “This initiative is about ensuring that women have the opportunity to participate equally in the arbitration and dispute resolution processes that shape our business landscape.”

The launch of the ERA Pledge in Egypt is just the beginning. As the country continues to modernize its financial regulatory framework and integrate more inclusive policies, the role of women in leadership and decision-making will only continue to grow. The FRA’s actions, paired with initiatives like the ERA Pledge, send a strong message that gender equality is not a distant goal but a present and ongoing commitment.

“Empowering women is not just a moral imperative; it’s an economic one,” Fares concluded. “As more women take on leadership roles in finance, the entire sector will benefit from their perspectives and expertise. This is just the beginning of a more inclusive, more equitable financial landscape in Egypt.”