OCGC inks agreement for preparation of corporate governance manual for DSEZA and associate companies

HE Yahya Said, "Abdullah Al Jabri, Chairman, Dqum Special Economic Zone Authority signed for DSEZA and HE Sheikh Abdullah Salim Al Salmi, Executive President of the Capital Market Authority signed for OCGC."

HE Yahya Al Jabri, Chairman, Dqum Special Economic Zone Authority, said, "The aim of preparing corporate governance manual emanates from our conviction that governance of independent entities and companies is important in establishing sound practices and enhancing internal and external audit in preparing financial statements and boosting disclosure and transparency standards to curb manipulation and risk, and contributes to enhancing confidence in the investment environment, maximization of profits and attracting capital. As DSEZ was established to promote the national economy, diversify income resources and enhance participation of the private sector through furnishing sound economic environment which require manuals and standards governing the work of the Authority and affiliate companies and to set out standards for exercising the powers for sustainable growth and to shorten the time required for growth especially we are in the initial stages and working to lay down regulatory frameworks, thus we need sound standards for practice from the onset to establish accountability, wise governance and social responsibility principles toward the citizens in the region."

HE added, "The OCGC is professional entity, hence it was assigned to prepare the manual which is very important."

HE Abdullah Salim Al Salmi, Executive President of CMA, said, "OCGC was established to be a professional entity in corporate governance rendering all kinds of service to all companies and institutions in the Sultanate. DSEZA's entrusting OCGC to prepare the governance manual is an evidence of their confidence in the capabilities of OCGC and their awareness of the importance of application of such practices in their work."

HE added, "Modern economies attach great importance to governance. CMA has attached considerable importance to best international practices in the management of public joint stock companies for the significance of corporate governance in directing the path of such companies toward further productivity and to maximize the profits as well as their stability and sustainability. We are endeavoring, through OCGC to promote the concepts of wise governance for institutions whether private or public."

HE confirmed, "DSEZ's management interest to prepare corporate governance manual coincides with the launching of promising economic renaissance in the Sultanate such as the huge economic projects currently underway. The principles in the manual would contribute to maximizing the profitability of the institutions and develop their performance to the best. They regulate the relationship between the stakeholders in the institution and each party takes into account the interest of the other parties."

Sayyid Hamid Sultan Al Busaidy, Director of OCGC, said, "The project includes several aspects such as preparing governance manual for DSECA and the associate companies, setting out standards for selection of directors for such companies and training of the Secretary and Directors of the Authority. The work will take four months during which the work team of OCGC will examine the laws and regulations of the Authority and then would commence preparation of the manual in line with international practices in this respect as well as the principles of the Organization for Economic Cooperation and Development and the Code of Corporate Governance issued by CMA."

The Director of OCGC, said, "He highly values the move of DSEZA for being in the right path and we hope other government institutions and companies would follow suit in setting out governance practices as their application is a guarantee from the risks of manipulation and collapse and application of such practices would maintain the companies and enhance their growth, continuity, profitability and contribute to the creation of sound economy able to face financial crisis."

It is noteworthy that OCGC was established in 2010 with the approval of the Council of Ministers and is concerned with all companies in the Sultanate whether government, family, public stock, or sole traders.

OCGC aims to promote the level of administrative practices in such institutions through training and development of directors and executives managements in addition to preparing codes, organizing professional seminars and conferences on the local and regional levels to exchange experience in the field of corporate governance, provide technical and managerial advice to directors in the relevant areas and organization of contests in corporate governance such as Corporate Governance Excellence Award.