Abu Dhabi learns from neighbour

* username: rupertbu

Abu Dhabi has established a new committee to provide greater oversight of its state-owned companies in a move that appears partly designed to avoid some of the mistakes made by neighbouring Dubai.

The body will be charged with ensuring that the companies have a uniform financial reporting culture and produce acceptable returns. It will examine how board directors are appointed and how the government exercises control.

It is understood the committee, due to be headed by Hamad al-Hurr al-Suwaidi, a senior official at the emirate’s finance department, will not affect Abu Dhabi’s sovereign investment vehicles. Instead, it will focus on companies such as Etihad Airways, the General Holding Corporation, an industrial conglomerate, and the Tourism Development and Investment Company , responsible for projects such as the $29bn (€21.5bn, £19.3bn) development of Saadiyat Island.