Opinion | Editorials
New laws will boost confidence
The government plans to introduce stronger corporate governance legislation
- Gulf News
- Published: 00:00 November 13, 2009
Investors are often willing to pay a premium for stakes in transparent, well-governed companies as they know that their money will be safer from the danger of corrupt or risky business practices.
They are also more attracted to countries where there are strong and clear laws to govern the running of companies and protect the rights and interests of investors, as best possible.
So the planned introduction of stronger corporate governance laws in the UAE, in May next year, will likely further boost the country's status as an investment destination. They will strengthen the independence of board members and external auditors, as well as providing for fines for violators, according to the Ministry of the Economy.
And, the government is backing its commitment to good corporate governance with action. The new rules will apply to companies listed on the UAE capital markets, including those that are partly owned by the government.
In these troubled economic times, when some of the biggest names in the international corporate world have been brought down by corrupt and risky business practices, the UAE is building a business environment where executives will be accountable to the law and can be trusted with the savings of investors.
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