The International Finance Corporation and the Hawkamah Corporate Governance Institute, a subsidiary of the Dubai International Financial Centre Authority, today announced the launch of a regional corporate governance survey as part of their combined efforts to improve standards within companies and banks across the Middle East and North Africa (MENA).
The survey is the first project devised by key players in the business community and regulatory entities and will help the region achieve higher standards of corporate governance. International consultants, IAAG Consultor?a & Corporate Finance and PKF, will use their considerable corporate governance expertise to ensure the quality implementation of the survey. The Union of Arab Banks will also assist.
Dialogue between public authorities and the private sector is crucial for progress in this area, and ongoing discussions over the past three years have led to a proposed agenda for activity, which includes:
Regional corporate governance survey of companies
Regional corporate governance survey of banks
Development of National corporate governance codes
Corporate governance for Family Owned Enterprises
Corporate governance of State-Owned Enterprises
Raising awareness of corporate governance issues in the media and in universities
Dr. Nasser Saidi, Executive Director of Hawkamah Corporate Governance Institute, said:
"We believe that strong corporate governance is a key element of investor confidence and of sound financial markets. The region's policy makers and the international financial community are well aware of the importance of implementing higher standards in the MENA region.
"As a result, we are pleased to introduce this survey, which will aim to develop a benchmark of the corporate governance of companies and banks in the region. Key areas we aim to focus on include: levels of commitment to corporate governance; board composition and responsibilities; shareholders rights, transparency and financial disclosure."
Sebastian Molineus, IFC's Corporate Governance Program Manager for the MENA region, added: "The purpose of the survey is to determine the existing level of corporate governance practices among banks and companies across the region, to benchmark these practices against international reference points for good corporate governance and finally offer recommendations for reform. The survey is to serve as the intellectual foundation for both the private and public sectors to advance corporate governance reforms in the region."
Eleven countries with operating stock exchanges across the MENA region will actively participate in the survey: Bahrain; Egypt; Jordan; Kuwait; Lebanon; Morocco; Oman; Saudi Arabia; Tunisia; UAE and the West Bank & Gaza.
Final results of the survey will be announced at the inaugural Hawkamah conference, "Towards Sound & Efficient Financial Markets and Banking Systems", to be held in Dubai on 26-27 November, 2006.
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About Corporate Governance
Corporate governance refers to the structures and processes for the direction and control of corporations.
Corporate governance specifies the distribution of rights and responsibilities among the main participants in the corporation including shareholders, directors and managers and spells out the rules and procedures for making decisions on corporate affairs. By doing this, corporate governance provides the structure through which company objectives are set, implemented and monitored. A company committed to good corporate governance has well-defined shareholder rights, a solid control environment, high levels of transparency and disclosure, and an empowered board of directors.
Hawkamah
The first Institute for Corporate Governance in the region, Hawkamah comprises a group of international institutions, including the Dubai International Financial Centre (DIFC), Organisation for Economic Cooperation and Development (OECD), UAE Ministry of Finance and Industry, Centre for International Private Enterprise (CIPE), International Finance Corporation (IFC), the Union of Arab Banks (UAB), Dubai School of Government (DSG), Young Arab Leaders (YAL), and the Institute of Management Development (IMD).
The Dubai International Financial Centre (DIFC)
The DIFC is an onshore hub for global finance with world-class regulations and standards. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. Members benefit from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
The DIFC is made up of the following core bodies:
The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial and non-financial institutions to the DIFC. (www.difc.ae)
The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modelled on that used in London and New York and its regulatory regime operates to standards that meet or exceed those in major financial centres. (www.dfsa.ae)
The Dubai International Financial Exchange (DIFX) - A liquid and transparent electronic market trading securities, bonds and derivatives. The DIFX provides access to regional and international capital and investment opportunities. (www.difx.ae )
The DIFC Courts - An independent court system that upholds the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC.
International Finance Corporation
The International Finance Corporation is the private sector arm of the World Bank group and is headquartered in Washington DC. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in international finance markets and helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC's worldwide commited portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit www.ifc.org
For more information pleae contact:
Dr. Nasser Saidi
Executive Director
Hawkamah Institute for Corporate Governance
Dubai International Financial Centre
Level 14 The Gate
P.O. Box 74777
Dubai
UAE
Phone +9714 362 2550
emai: nasser.saidi@hawkamah.org
Sebastian Molineus
Manager
Corporate Governance Program
Middle East & North Africa
IFC Nile City Towers 2005 C Cornishe El Nil, North Tower, 24th Floor
Ramlet Boulac
Cairo
Egypt
Phone: +20 2 461 9150 (ext.327)
email: smolineus@ifc.org
Mark Bennewith
Dubai International Financial Centre
Tel: +9714 362 2450
© Press Release 2006
