The new corporate law intended to ensure that the UAE’s listed companies exercise full transparency might be introduced in 2010. As UAE already have rules and regulations covering corporate governance. But the new proposed law will make it compulsory for listed companies to abide by all ESCA (Emirates Securities and Commodities Authority) rules and regulations.”
According t Mariam Al Suwaidi, deputy CEO for Issuance, Research and Legal Affairs at the (ESC), Spoke in the first Abu Dhabi Corporate Governance Conference, organised by the capital's Centre for Corporate Governance that the new law would be more transparent and seek full clarity from listed companies. Al Suwaidi said that there are some ambiguities in the current rules and regulations, and also with regards to the interpretation of some articles.
UAE is still at the stage where these rules are voluntary. The need for greater transparency laws for companies has been felt more acutely in recent times. The current crisis has underlined the need to reinforce good governance in the country. There are lots of companies adopting improved standards of corporate governance and all this shows a new culture is being created in the country.” UAE may also introduce a law to better protect foreign investors, amid an increase in civil court cases in the wake of the global financial crisis.
Strengthening the corporate laws in the UAE and increasing accounting transparency would enhance the UAE’s reputation as a safe financial and business destination to entrust investors’ money.
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