Good Corporate Governance Key to Unlocking Value for GCC Companies
Dubai, UAE, 11 September 2017: The GCC Board of Directors Institute (GCC BDI), in collaboration with the UAE International Investors Council (UAE IIC), hosted a forum bringing together board members, business leaders and subject matter experts to discuss the importance of corporate governance in a regional context. While still a developing theme, the forum highlighted that good corporate governance, whether in a family business, large listed company or semi-public entity, is key to unlocking value.
In his keynote speech, His Excellency Sultan bin Saeed Al Mansoori, UAE Minister of Economy and Chairman of UAE IIC, underlined the fundamental role of efficient corporate governance practices in driving growth in line with the Government’s vision to make the UAE a leading economic hub internationally.
GCC BDI faculty member and CEO of Global Governance Services, Dr Chris Pierce, an internally renowned expert in the field of corporate governance, outlined the latest trends in corporate governance to the more than 50 participants who attended the forum. Drawing on his deep experience in advising listed as well as family and small and medium sized enterprises in the Gulf, Pierce spoke about the advantages of a well-governed company, including improved access to financing, lower cost of capital, improved operations performance and increased firm and share value. Diversity on boards, IT and risk governance, clarity on the duties of a board of directors and the role of regulators and enforcement were discussed as some of the global trends in the field of corporate governance, which is increasingly becoming a competitive edge for companies in the region.
For a panel discussion on how international investors make investment decisions with a focus on the GCC, Dr Chris Pierce was joined by Rabih Khouri, Managing Director Corporate Investment MENA at Investcorp, Sammy Kayello, Chief Executive and Chairman at Morgan Stanley Middle East, Farah Foustok, CEO Lazard Gulf Ltd Middle East and Majed Al Mesmari, Executive Director and Head of Investment Banking UAE at JP Morgan. While the drop in the price of oil has certainly impacted regional markets, the panel agreed that adversity has forced GCC economies and individual companies to analyse their operations, resulting in more agile approaches to business. Panelists were also unanimous that while misconceptions about the GCC remain – international investors still occasionally fail to see the region as six distinct economies with their own growth drivers –, the outlook in this part of the world is more optimistic than in some developed economies.
Commenting on the event, Dr Chris Pierce said, “The forum brought to light the monumental development corporate governance has made in the region over the past decade. While many companies in GCC countries are still at the beginning of their journey to achieving board effectiveness, there is widespread agreement that the initial structural and procedural advancements are positively impacting growth, both on a micro- and macroeconomic level. This is a great success for us at GCC BDI, who have set out to support businesses in the region in adopting world-class corporate governance standards”.
Jamal Al Jarwan, Secretary General of the UAE International Investors Council, added, “In the face of a rapidly changing regional business environment, building and maintaining trusting relationships within the international investment community is one of the key obstacles faced by UAE companies exploring overseas investment opportunities. Board effectiveness is a key success factor in leveraging these relationships, thus enabling companies to implement their ambitious growth strategies”.
Celebrating its 10th anniversary this year, GCC BDI’s event calendar for the remainder of the year is well filled. Upcoming workshops include ‘Developing an Ethical Work Culture’ with Professor Deon Roussow on 27-28 September 2017 in Dubai as well as the next editions of ‘Foundations of Directorship’, hosted in Al Khobar on 2-3 October 2017 and in Riyadh on 12-13 November 2017, which will invite participants to explore and analyze modern-day board dilemmas, discuss potential solutions, tools and effective corporate governance practices and share experiences.
About GCC Board Directors Institute
The GCC Board Directors Institute (GCC BDI), founded in 2007 as a not-for-profit organization by leading regional corporations - Investcorp, SABIC, Saudi Aramco and Emirates NBD - and it is supported by the four advisory firms Allen & Overy, Heidrick & Struggles, McKinsey & Company, and PricewaterhouseCoopers. In collaboration with the regional regulatory authorities, the Institute’s mission is to advance the development of corporate governance in the region by equipping board members and executives with the cutting-edge know-how required to sustain effective practices through providing access to resources and events.
Since its inception, GCC BDI has established into one of the region’s largest and most influential networks comprising more than 880 members representing 1800 companies and has hosted over 150 high-profile member events and workshops. As the only regional entity to form part of the Global Network of Directors Institute (GNDI), GCC BDI enjoys global recognition as the leading network of board directors in the Middle East.
For more information on GCC Board Directors Institute, please visit www.gccbdi.org, phone +971 (0)4 554 7967 or email getinvolved@gccbdi.org.
Media contact
Jennifer Kedissa
Bell Pottinger Middle East
Email: jkedissa@bellpottinger.com
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