Corporate governance the key to unlocking Capital Markets in the GCC | GulfNews.com

Corporate governance the key to unlocking Capital Markets in the GCC | GulfNews.com:

"It has been over five years since the collapse of Lehman Brothers, but the financial crisis continues to cast a long shadow over the global economy. In a stubbornly weak global economic environment, the development of Capital Markets in the GCC remains vital for catalysing future growth. In turn, more robust corporate governance in the region holds the key to unlocking the development of Capital Markets. So in effect, it is lagging corporate governance that is holding back economic growth.
Many believe that Capital Markets can create a virtuous circle of sustainable economic growth. Deeper and more liquid Capital Markets with regular bond issuances and benchmark sovereign yield curves facilitate capital market access for corporate borrowers and enable corporates to confidently access the bond and Sukuk markets, diversifying their funding sources and attracting foreign investment. In addition, the bond markets increasingly satisfy corporate funding requirements, enabling banks to target new business opportunities and reopen conventional funding channels, financing enhanced corporate growth as a result."

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