(MENAFN- Mid-East Info)

• 9th biennial GCC BDI Board Effectiveness Review reveals 78% of directors report that board effectiveness has strengthened, yet only 5% have a fully implemented AI adoption plan, and 40% report that their boards have no female representation.

Riyadh, KSA;November 2025: As Gulf economies accelerate transformation, boardrooms across the region are under pressure to evolve. The GCC Board Directors Institute (GCC BDI), in partnership with Heidrick & Struggles, has released its 9th biennial Board Effectiveness Review, revealing that while 78% of directors report improved board performance, there are critical gaps in AI fluency, gender diversity, and oversight of geopolitical risk.

The 2025 Review provides a compelling snapshot of boardroom evolution in the GCC, drawing on insights from 193 directors and executives, as well as 14 confidential interviews. It is anchored in the GCC BDI Framework for Board Effectiveness, which spans eight dimensions of governance, including board composition and director capabilities, as well as ethics, evaluation, and culture. The findings depict a region in transition: boards are becoming more strategic and resilient yet remain underprepared for disruptive forces such as AI and geopolitical volatility.

“GCC boards are moving beyond compliance to stewardship – focusing on purpose, resilience, and long-term value,” said John Gollifer, CEO of GCC BDI.“It's encouraging that 78% of respondents see improved board performance, but the mandate ahead is clear: allocate more time to strategy, accelerate AI fluency, and embed diversity and renewal into board practices as part of purpose-driven governance. With clear governance boundaries and forward-looking agendas, boards can lead the region's next chapter of transformation.”

“The strongest boards we observe are rebalancing their agendas toward strategy and talent, while professionalising composition, evaluation, and succession,” added Maliha Jilani, Partner in Charge, Middle East & North Africa at Heidrick & Struggles.“Yet only 32% report formal selection, induction, review, development, and deselection processes, and 67% say their boards have no formal succession plan – missed levers for performance, accountability, and resilience. This is a pivotal moment for boards to institutionalise these disciplines.”

“AI oversight is on the agenda but remains limited in most boardrooms,” said Markus Wiesner, Regional Managing Partner, Heidrick Consulting for Asia Pacific, Middle East, and Emerging Markets at Heidrick & Struggles.“Only 5% report a fully developed and implemented AI adoption plan, while 59% say their boards don't spend enough time on generative AI – and just 14% feel confident about AI's strategic implications. In parallel, geopolitical risk is rising fast up the agenda, yet only 15% of boards have a fully developed framework to integrate it into strategic decision-making. Directors need structured scenario planning, rapid upskilling, and, in some cases, fresh profiles at the table.”

Key findings at a glance

• Board effectiveness is improving: 78% say performance has strengthened over the past two years.
• Strategy is under-prioritised: 83% want more board time on strategy; agendas still skew toward compliance and past performance.
• Composition and renewal gaps persist: Only 32% have formal director lifecycle processes; 67% lack succession plans.
• AI oversight is shallow: 63% lack a defined AI strategy; only 5% have a full adoption plan; 14% feel confident on AI's strategic impact.
• Geopolitical risk is rising: 40% cite regional instability as a top issue; only 15% have a formal framework for oversight.
• Gender diversity is nascent: 40% of boards have no women; only 6.8% of listed companies have female board members; yet perceived cultural obstacles to appointing women fell from 33% in 2023 to 28% in 2025.

The report signals a shift from baseline compliance toward modern, resilient governance – one that is attuned to AI disruption, geopolitical volatility, and evolving stakeholder expectations. Directors identified growing expertise needs across strategic thinking (48%), finance (17%, up from 6%), performance management (32%, up from 21%), legal and regulatory knowledge, and risk management – pointing to a recalibration of board capabilities across the region.

About GCC Board of Directors Institute:

GCC BDI is supported by nine leading regional corporations and professional services firms who serve as our strategic partners: First Abu Dhabi Bank, National Bank of Bahrain, Oman Investment Authority, SABIC, Saudi Aramco, Allen & Overy, Heidrick & Struggles, McKinsey & Company, and PwC. GCC BDI aims to enhance board member capabilities, create a strong regional network of board members, and disseminate high-quality corporate governance knowledge. Since its founding in 2007, it has delivered over 700 programmes and forums to top-tier companies in the Gulf and now comprises over 4500 members.

As the leading organisation for board directors in the region, GCC BDI is globally recognised and the only director institute from the Gulf region admitted to the Global Network of Director Institutes (GNDI). Its mission is to strengthen corporate governance in the GCC through capability building, advocacy, and promoting sound governance practices, with a vision to be the pre-eminent institute for boards and directors in the GCC, promoting the highest professional standards of corporate governance and professional directorship.

About Heidrick & Struggles:

Heidrick & Struggles is a premier provider of global board, leadership, and organisational advisory insights, partnering with clients to develop future ready boards and leaders through executive search, board advisory, inclusive leadership, leadership assessment and development, organisation and team acceleration, and culture shaping.

MENAFN13112025005446012082ID1110336599