When ‘thanks, but no thanks’ can be good for business (Comment)

Say the words “corporate governance” and people immediately think of the business world. In fact, many of the problems that ail the UAE have their roots in a lack of good business practice. That fancy-sounding phrase simply means a set of rules that are designed to avoid potential conflicts of interest.

There is plenty to be done to meet international standards. For instance, it is still possible, legal and acceptable for ministers serve on the boards of businesses and banks. In some even more odd cases, some individuals sit on the boards of two competing corporations.

The federal and local governments may own shares in both these companies and see no issue with having the same official representing their interest in both, but that may not be the case with regular investors. This negatively affects the reputation of the UAE. In Oman, for instance, ministers are not permitted to serve on public company boards, let alone chair two competing company boards, and individuals cannot serve on the boards of more than five listed companies.