Dubai Financial Market notes governance improvements

The stock exchange says company leadership teams have benefitted from a partnership with the Hawkamah Institute


Joe McGrath

Dubai Financial Market (DFM) says it has seen considerable improvements in corporate governance in more than two-thirds of its listed companies, following its partnership with Hawkamah Institute for Corporate Governance.

The stock exchange, which became the first Islamic Shariah-compliant exchange globally in 2007, said the partnership has been significant in contributing to governance reform across Dubai and the UAE.

Hawkamah has so far trained over 100 company secretaries, and briefed the boards of more than 65 per cent of DFM-listed companies on how to drive good corporate governance, according to DFM.

The trading venue said its training programme was developed after it identified difficulties finding qualified board members and company secretaries in the Dubai region.

Hawkamah has launched a foundation program for chartered governance professionals with ICSA, The Governance Institute of the UK. The program helps companies prepare the second generation of governance experts and professional company secretaries.

“Sustainability and good governance are central to our vision,” Essa Kazim, chairman of the Dubai Financial Market said.

“The DFM continues to adopt best practices to ensure that good governance is instilled in our listed companies and within the DFM itself. Our cooperation with Hawkamah has proven successful in terms of improving corporate governance practices at DFM-listed companies.”

Dr Ahmad El Sheikh, chairman of Hawkamah, added: “With the cooperation of DFM, we have made significant strides in terms of advancing the standards of good governance in the UAE, we have trained more boards and graduated more qualified company secretaries.

“Since its establishment, the Institute has trained more than 1,800 directors and over 200 company secretaries. We look forward to continued collaboration to promote corporate and government sectors’ reform.”

Securities listed on the DFM include listed equities, bonds and Sukuk as well as other financial instruments currently being developed including ETF’s, rights issues and covered warrants.


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