Dr. Henry Azzam identifies factors to consider in strengthening corporate governance across the Gulf

Riyadh, Saudi Arabia - 8 June 2011: Dr. Henry Azzam, Chairman, Deutsche Bank, MENA, emphasised the need for corporations in the GCC to look to improving their boards' composition and directors' capabilities to enhance corporate governance and a stable economy in the region.

His proposal was made during the keynote speech he delivered at the GCC Board Directors Institute (BDI)'s Alumni Dinner to over 100 attendees. Dr. Azzam explained the GCC needs more than interest from corporations in improving corporate governance, and that the region is in need for an effective implementation of best practices.

"The recent financial meltdown has played an important role in pressurising all companies to look to lifting their boards' effectiveness. However, for the GCC to strengthen its corporate governance, we need boards with the right knowledge and expertise to enhance best practise and further integrate the region's financial and economic efficiency.

"For companies seeking to raise the bar and increase value added by their boards, such workshops and networking events are crucial in improving knowledge, as well as promoting experience and solution-sharing between directors, businessmen and world-class experts."

Emphasising the importance of high standards in corporate governance to the regional economy and its global competitiveness, Mr Al Zain said:  "Corporate governance is essential to a stable, predictable, business environment.  With this in place we can all look safely to continuing economic diversification, foreign investment and strong growth."

Multaq Al Morished, Governor of BDI and Executive President of Corporate Finance at SABIC, that hosted the event highlighted the need for major companies in the GCC to take a lead in implementing such best practices: 'We at SABIC believe that we have a leadership role to play in implementing best corporate governance practices and promoting them. BDI's events help raise awareness of the need and benefits of improving board effectiveness in the region. In challenging financial times, the importance of strengthening our  governance infrastructure is reinforced and we are proud to host this program that would help us in building better boards on both a corporate and country level.'

The dinner was held as part of BDI's Senior Director Workshop, the tenth in a series of workshops conducted by the institute and the second hosted by SABIC. The workshop was attended by senior directors from leading corporate entities and institutions in the region, including Saudi Telecom, Maaden and Investcorp. In addition to hearing from Dr. Azzam and Mr. Al-Morished, participants had the opportunity to hear from faculty members of leading advisory institutions on building board members' capabilities and engaged in extensive peer discussion.

BDI was launched in 2007 in close collaboration with SABIC and four other leading corporations: Investcorp, Saudi Aramco, Emirates NBD and Zain. It resulted from an initiative by four leading advisory institutions: Allen & Overy, Heidrick & Struggles, McKinsey & Company and PricewaterhouseCoopers. Since its inception, BDI has had full support of the regional regulatory authorities including the Capital Market Authorities of both Saudi Arabia and Oman, the Central Bank of Bahrain, the Qatar Financial Centre Regulatory Authority and the Securities and Commodities Authority of the UAE.

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About the GCC Board of Directors Institute
The GCC Board Directors Institute (BDI) was launched in 2007 by a group of large corporations and professional advisory firms with the explicit goal to support better corporate governance primarily through building board members' capabilities.

BDI was set-up as a not-for-profit institution with the objective of making a positive impact on the economies and societies of the region by promoting professional directorship and raising the level of board effectiveness. Its principle objectives are:

  • To build GCC board member capabilities and enhance their understanding of best practice board governance;

  • To create a regional network of board members;

  • To forge links between GCC board members and their international counterparts;

  • To create a forum for discussion on regional governance issues amongst the business community, thereby placing corporate governance higher on the region's agenda.

BDI has delivered nine workshops so far that have gathered over 160 senior board members representing over 350 boards of major GCC companies. BDI now counts over 200 members from the GCC region who have gained access to a wide network of other regional board directors and business leaders through the Institute.

In March 2011, BDI published its second biennial report on board effectiveness that measures the improvements made by boards in the GCC since the first report and assesses the impact of the financial crisis on the implementation of best board governance practices in the region. The first report, published in early 2009, 'Building Better Boards' was the first study of its kind in the GCC.

For more information on BDI or to attend an upcoming workshop, please visit the Institute's website at: www.gccbdi.org or contact the Institute directly at +971 (04) 409 4594.

For further information please contact:
Khamael Al Safi
GCC Board Directors Institute (BDI)
Direct: +971 4 409 6664

© Press Release 2011