Hawkamah/IFC report highlights growing awareness of corporate governance

The report highlights the growing awareness among regional institutions of the importance of improving corporate governance standards to ensure the accountability, transparency, fairness and responsibility of companies in the region on legal, social and economic affairs.

Based on a survey of 1,044 banks and listed companies from 11 countries across the Middle East and North Africa region, the report shows that 76% of banks and 67% of listed companies questioned cite corporate governance as being either important or very important for their businesses.

However, though most of the institutions questioned acknowledged the need for corporate governance reform, the report highlighted that many did not have the required understanding to implement the necessary changes.

Dr Nasser Saidi, Executive Director, Hawkamah said:

"This report provides an invaluable tool for evaluating and assessing current attitudes towards corporate governance among regional institutions. Hawkamah is committed to promoting good corporate governance across the region and the encouraging findings of this report offer a valuable insight into what needs to be done to assist regional companies to implement sound corporate governance frameworks."

The findings of the survey provides corporate governance projects with a baseline on which to focus their corporate governance reform activities and allows the public to gain an understanding of the extent to which banks and listed companies in the MENA region follow good corporate governance practices, in-line with internationally recognized best practice.

Michael Essex, IFC's Regional Director for the Middle East and North Africa said: "By conducting this survey, Hawkamah and the IFC are underlining their commitment to assisting both the private and public sectors to close any gaps between best and current corporate governance practice in the region, by identifying areas for improvement. Good corporate governance plays an integral role in the way a company is administered and, as the survey suggests; more needs to be done by regional institutions to improve their corporate governance frameworks."

Martin Steindl, IFC Program Manager for Corporate Governance, added: "It is encouraging to learn that corporate governance regulations and codes are being put in place in most countries of the region, primarily driven by the regulators. This survey is an attempt to benchmark whether there is private sector buy-in to corporate governance and addresses what needs to be done by corporate governance organizations such as Hawkamah to further consolidate corporate governance reforms."

Hawkamah was established to shape the development of corporate governance in the Middle East, North Africa, and Central Asia.

By promoting its core values of transparency, accountability, fairness, disclosure, and responsibility, Hawkamah works on policy and practical aspects of corporate governance reform in the region.