Dubai Establishes Regional Corporate Governance Institute

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

15 February 2006

The Dubai International Financial Centre has announced the establishment of the region's first Institute for Corporate Governance, known as Hawkama, which is being set up with the cooperation of the DIFC, the Organization for Economic Cooperation and Development (OECD) the United Arab Emirates Ministry of Finance and Industry, and the Union of Arab Banks, among other organisations.

The principal aims of Hawkama are to promote corporate sector reform and good governance, assist the countries of the region in developing and implementing sustainable corporate governance strategies, and facilitate the economic and financial integration of the region with the rest of the world.

"It is our key objective to work towards regional development and diversification," commented Dr Omar Bin Sulaiman, Director General of DIFC Authority, who noted that the launch of Hawkama was "a major step forward towards achieving this goal".

He continued: “Optimising the performance and health of corporations and their contribution to their economies and societies in today’s global business environment is dependent on implementing sound governance practices."

"Laws, regulations and standards, institutions, and enforcement mechanisms are the core constituents of a robust corporate governance system. It helps build confidence in a business organisation and its host economy and provides strong incentives for international trade and investment in both.”

In addition to coordinating, designing, planning and implementing corporate governance reforms in the region, Hawkama will provide assessment of the outcome of the corporate governance policies at the private sector level.

The organisation intends to target key sectors such as the capital markets and regulatory authorities; banks, funds and financial institutions; private sector enterprise which include family owned business, small and medium enterprise; public sector; and the media for raising awareness of corporate governance.

Other oganisations assisting the launch of Hawkama include the Centre for International Private Enterprise (CIPE), the International Finance Corporation (IFC), the Dubai School of Government (DSG), the Young Arab Leaders (YAL), and the Institute of Management Development (IMD).

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