Hawkama set up to boost UAE corporate governance

posted on 13/02/2006: 94 views

Corporate governance is likely to get a shot in the arm with the launch of Hawkama, an institute set up by the Dubai International Financial Centre (DIFC) in association with a number of international agencies. Hawkama, the Institute for Corporate Governance, aims to promote corporate sector reform and better management.



It will help countries in the region to develop and implement sustainable corporate governance strategies with the aim of facilitating the economic and financial integration of the region with the rest of the world, senior officials said yesterday.



Dr Omar bin Sulaiman, Director General of the DIFC Authority, said: "This will be an international institute serving all nations from Morocco to Iran. "It will be a source of technical assistance, analysis and research to help assess, build and improve the corporate governance of countries and companies.” Hawkama is being set up by a group of international institutions, including DIFC, Organisation for Economic Cooperation and Development (OECD), the UAE Ministry of Finance and Industry, the Centre for International Private Enterprise, International Finance Corporation, the Union of Arab Banks, Dubai School of Government, Young Arab Leaders, and the Institute of Management Development.



It is a stepping-stone to the integration of governance standards in the region, Dr bin Sulaiman said, guided by globally agreed frameworks.



Hawkama could well provide the springboard for an industry that has so far failed to agree on a common agenda for corporate governance, industry watchers said. Corporate governance will also help to improve company valuations and give them better access to capital, they added.



Dr Mohammed Khalfan bin Kharbash, UAE Minister of State for Financial and Industrial Affairs, said: "This is a vital step towards integrating our economy and businesses more closely, regionally and with the rest of the world.” Dr Nasser Saidi will be the executive head of the institute, whose start-up financing has been provided by the DIFC. Other agencies will chip in funds at a later stage.



Dr bin Sulaiman said the institute is "a new concept” and "we need to educate them before we start judging them”. Dr Saidi emphasised that Hawkama is not a regulatory body. (Emirates Today)

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