21 February 2012
MUSCAT -- The 6th GCC Regulators' Summit (February 20 & 21) began here yesterday under the auspices of Yahya bin Said bin Abdullah al Jabri, Chairman, Duqm Special Economic Zone Authority.
In a statement issued for the event, Shaikh Saad bin Mohammed al Saadi, Minister of Commerce and Industry, said: "It is extremely urgent and necessary that the GCC countries adopt a unified economic, financial and legislative stand within the international organisations particularly IOSCO (International Organization of Securities Commissions) so that they could positively influence the region.
"This in turn will develop the legal and regulatory frameworks for the financial markets and adapt them according to the markets needs and circumstances in line with the interest and requirements of the Gulf Common Market".
The event is organised by the Capital Market Authority in collaboration with Thomson Reuters and Oman Establishment for Press, Publication and Advertising (OEPPA), publisher of Oman Observer and Arabic daily Oman, is the media sponsor.
The minister said, the conference "will strive to find an appropriate environment capable of managing crises and adapt to developments in the framework of the challenges that the regulators are facing amid the instability that the Arab countries witnessed last year and the challenges brought by the world financial crisis as well as the uncertainty and the slowdown as a result of the European debt crisis".
There is no doubt that the region's regulators have to assume the responsibility of stabilising the financial markets and controlling their performance in order to overcome to crises they are facing, stressed the minister.
These institutions therefore have to develop their internal regulatory systems and their risk management operations, to promote transparency and accountability and to review and amend laws and regulations. They have to ensure the common legislations among the region's markets, the mutual recognition of the GCC countries' legislations and the implementation of the CMA's Higher Council's resolution stipulating "the integration of the GCC's financial markets and the unification of the pertinent policies and regulations", he added.
The Sultanate has always been fully aware of the utmost importance of implementing governance to improve companies' performance, fight corruption and attract investments by preparing the local structure and issuing the companies management and organisation Charter in 2002.
It is also aware that it should be putting into practice governance requirements and concepts especially regarding disclosure and transparency in order to maintain the investors' confidence in the securities markets. In this regard, "we must say that every country and regulator has its specificity and can therefore apply the necessary standards, systems and precautionary measures that go in line with its place within the general framework of corporate governance. In fact it would not be possible to import ready-made models from other countries without adapting them to the characteristics of each country", Al Saadi stressed.
It is imperative that the financial and monetary reform keep abreast of the developments so that the whole financial system would be ready for any future crises. Co-ordination must exist between the securities markets and the banking system and measures must be taken in order to mitigate the impact of the financial crises that can hit the region's economy at anytime. This must be done through organising funding investment with securities, implementing the liquidity risks policy, establishing special risk management units and reviewing the investment policies of the financial institutions abroad.
Al Saadi said Islamic financing is becoming one of the biggest concerns of the CMA, after the decision taken by the Sultanate's government allowing to deal with Islamic financing instruments and Takaful Insurance.
In order to advance the services provided by both the capital market and the insurance sectors in this regard, CMA prepared the necessary arrangements and the pertinent legislative and technical studies in order to introduce new investment products that are in line with the Islamic Shariah precepts such as the Takaful Insurance companies, Islamic investment funds as well as permits to practice work in the Sultanate not only for Muslims but for all investors. This will allow them to meet the present and future requirements as well as the best international practices in force, said Al Saadi.
"We all are aware of the importance of the regional human capital for the advancement of the securities markets. This requires upgrading the skills of the Gulf workforce and providing it with specialized professional skills that would promote the securities markets' contribution in the national economies and enhance the Gulf populations' capacities, ambitions and needs", he said.
MUSCAT -- The 6th GCC Regulators' Summit (February 20 & 21) began here yesterday under the auspices of Yahya bin Said bin Abdullah al Jabri, Chairman, Duqm Special Economic Zone Authority.
In a statement issued for the event, Shaikh Saad bin Mohammed al Saadi, Minister of Commerce and Industry, said: "It is extremely urgent and necessary that the GCC countries adopt a unified economic, financial and legislative stand within the international organisations particularly IOSCO (International Organization of Securities Commissions) so that they could positively influence the region.
"This in turn will develop the legal and regulatory frameworks for the financial markets and adapt them according to the markets needs and circumstances in line with the interest and requirements of the Gulf Common Market".
The event is organised by the Capital Market Authority in collaboration with Thomson Reuters and Oman Establishment for Press, Publication and Advertising (OEPPA), publisher of Oman Observer and Arabic daily Oman, is the media sponsor.
The minister said, the conference "will strive to find an appropriate environment capable of managing crises and adapt to developments in the framework of the challenges that the regulators are facing amid the instability that the Arab countries witnessed last year and the challenges brought by the world financial crisis as well as the uncertainty and the slowdown as a result of the European debt crisis".
There is no doubt that the region's regulators have to assume the responsibility of stabilising the financial markets and controlling their performance in order to overcome to crises they are facing, stressed the minister.
These institutions therefore have to develop their internal regulatory systems and their risk management operations, to promote transparency and accountability and to review and amend laws and regulations. They have to ensure the common legislations among the region's markets, the mutual recognition of the GCC countries' legislations and the implementation of the CMA's Higher Council's resolution stipulating "the integration of the GCC's financial markets and the unification of the pertinent policies and regulations", he added.
The Sultanate has always been fully aware of the utmost importance of implementing governance to improve companies' performance, fight corruption and attract investments by preparing the local structure and issuing the companies management and organisation Charter in 2002.
It is also aware that it should be putting into practice governance requirements and concepts especially regarding disclosure and transparency in order to maintain the investors' confidence in the securities markets. In this regard, "we must say that every country and regulator has its specificity and can therefore apply the necessary standards, systems and precautionary measures that go in line with its place within the general framework of corporate governance. In fact it would not be possible to import ready-made models from other countries without adapting them to the characteristics of each country", Al Saadi stressed.
It is imperative that the financial and monetary reform keep abreast of the developments so that the whole financial system would be ready for any future crises. Co-ordination must exist between the securities markets and the banking system and measures must be taken in order to mitigate the impact of the financial crises that can hit the region's economy at anytime. This must be done through organising funding investment with securities, implementing the liquidity risks policy, establishing special risk management units and reviewing the investment policies of the financial institutions abroad.
Al Saadi said Islamic financing is becoming one of the biggest concerns of the CMA, after the decision taken by the Sultanate's government allowing to deal with Islamic financing instruments and Takaful Insurance.
In order to advance the services provided by both the capital market and the insurance sectors in this regard, CMA prepared the necessary arrangements and the pertinent legislative and technical studies in order to introduce new investment products that are in line with the Islamic Shariah precepts such as the Takaful Insurance companies, Islamic investment funds as well as permits to practice work in the Sultanate not only for Muslims but for all investors. This will allow them to meet the present and future requirements as well as the best international practices in force, said Al Saadi.
"We all are aware of the importance of the regional human capital for the advancement of the securities markets. This requires upgrading the skills of the Gulf workforce and providing it with specialized professional skills that would promote the securities markets' contribution in the national economies and enhance the Gulf populations' capacities, ambitions and needs", he said.
© Oman Daily Observer 2012
