GCC corporate governance 'developing rapidly' says Emaar Industries & Investments

Emaar Industries & Investments (EII) is the leading private joint stock company aimed at capitalising on the growth potential of the manufacturing sector in the Middle East, North Africa and South Asia.

Dr. Ahmad Khayyat's comments come on the back of last week's research study conducted by a leading global asset manager, which concluded that 'emerging markets are still lagging behind practices' in more developed economies.

However, Dr. Khayyat is adamant that the region is on course to raise the standard of corporate governance in emerging markets.

'Despite the concerns regarding corporate governance in emerging markets this region is developing at a rapid rate on a number of levels. For example, Emaar Industries & Investments has ensured that not only within our organization but throughout all of our subsidiaries, there must be an elevated standard when it comes to transparency, accountability and business conduct,' says Dr. Khayyat.

'To this end we have established a 'Corporate Governance' manual that has been ratified by all board members and subsidiaries and outlines the best practices appropriate for a growing global brand like Emaar Industries & Investments,' adds EII's CEO.

Within the newly established Corporate Governance Handbook distributed organisation wide, EII stipulates a Code of Business Conduct, which governs the company and its subsidiaries' commercial operations and the conduct of directors, employees, consultants and any person representing the company.

Ethical conduct throughout the corporation, including oversight, development, and review and monitoring of the company's code of business conduct and ethics, is crucial to attracting partners from overseas according to Dr. Khayyat.

'One of the apprehensions of companies operating in more mature markets is the ability of emerging markets to support ethical operations within its organisations,' explains Dr. Khayyat.

'The GCC cannot afford to be tarred with the same brush as other emerging markets and it is important for companies such as Emaar Industries & Investments to set this benchmark in ethical business practice in order to portray the correct image of the Middle East.'

Other corporate governance initiatives at Emaar Industries & Investments include; Internal and External Auditing, Risk Management, Measurement and Accountability.

With more than 12 subsidiary and associate companies within its portfolio, EII had a successful 2007. The organisation acquires a controlling stake in most of its subsidiaries and invests heavily in management support as well as financial.

EII's initial remit is to invest in industries that boost the manufacturing sector in the GCC and it has already assisted in aiding production and management procedures with all of its partners.