Over the past few years, key regulators in the UAE have enhanced the regulatory scene with further laws, guidelines and decrees. We have seen the following recent developments in the regulatory landscape:
- Central Bank of UAE’s Corporate Governance Regulations and Standards issued on 18 July 2019 which aimed to standardize corporate governance practices for banks in the UAE.
- Securities & Commodities Authority’s Decision no. (3/Chairman) of 2020 concerning the Joint Stock Companies Governance Guide.
- Cabinet’s new Decision no. (2/9w) of the year 2020 on the Governance System for Federal Government Boards.
In addition to the above regulations/laws, each industry and type of entity is governed by regulations/ standards aimed at establishing minimum standards to ensure effective Corporate Governance. All of these standards are geared towards providing key stakeholders and regulators the level of confidence and assurance on the stability and long term sustainability of the entity.
Macroeconomic challenges, whether unforeseen or expected, have resulted in liquidity constraints in both private and public entities, requiring organizations to secure alternate funding sources. Financial institutions view an entity’s governance maturity as a critical indicator of an entity’s going concern, business continuity and long term sustainability, all of which are assessed prior to deciding on providing funding facilities, restructuring existing credit facilities, etc.
Throughout this publication we highlight:
- Key elements towards having an effective corporate governance framework.
- Challenges that may be faced by different entities when adopting leading governance practices.
- Our methodologies and approaches to support entities working to align their corporate governance practices with leading international standards and benchmarks.
- Our rich corporate governance experience covering diversified sectors and providing customized maturity tools to assess governance frameworks.