UAE corporate scandals require a clean up | Analysis – Gulf News:
Two years ago, the spectacular fall from grace of Dubai-based private equity titan, Abraaj, concentrated minds on the importance of developing a strong corporate governance culture in the region.
The UAE had been proactive in its response to the Abraaj scandal - on April 28, new corporate governance rules for public companies came into force, which are in line with international best practice and aim to promote accountability, fairness, gender diversity and transparency.
The legislation includes a mandate for a female board representation of not less than 20 per cent and a requirement that the majority of board members should be independent, non-executive directors. These are pragmatic, sensible measures and will help to maintain the UAE’s standing in the international capital markets.
Rot endures
However, recent scandals at NMC Health and Al Masah Capital have reignited longstanding concerns over corporate governance standards in the UAE. NMC Health collapsed into administration in March after more than $4 billion of hidden debt came to light following suspected fraud by senior executives within the firm. As with Abraaj, numerous conflicts of interest existed, including family members occupying senior positions within the company and former partners of the firm’s auditor, EY, sitting on its board.
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