Gulf banking regulators to tighten governance
Dubai, October 14, 2009
Regulators in the Gulf region -- hit by a number of corporate scandals -- are pushing for stricter corporate governance standards in the banking industry, an expert said.
Kuwait, Saudi Arabia and Oman are pressing for stricter enforcement of existing corporate governance guidelines, according to Nikolai Nadal, director at thinktank Hawkamah Institute of Corporate Governance, which is working with authorities to improve governance standards.
Calls for improvement in standards come as a number of scandals involving lawsuits in the broader corporate sector hit the region since the credit crisis.
"The central bank of Kuwait and Sama (Saudi Arabian Monetary Authority) are considering introducing mandatory reform of corporate governance guidelines. The UAE (United Arab Emirates) is still in draft stages," Nadal told Reuters on the sidelines of a conference.
"Measures will vary from country to country. We're suggesting certain proposals to be mandatory... The framework is there. Now Sama is starting to tighten the bolts... make sure enforcement measures are in place and sending strong messages to companies."
Prominent Saudi business groups Saad and Ahmad Hamad Algosaibi & Bros (AHAB) shocked the Middle Eastern banking community when they defaulted on some of their debt in May. - Reuters
More Finance & Capital Market Stories
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO