The UAE is paving the way for a tougher regulatory regime according to Emirates regulatory affiars officer Maryam al Suwaidi. Speaking at the First Abu Dhabi Corporate Governance Conference on Wednesday, al Suwaidi said that the Emirates Securities and Commodities Authority (ESCA) has been involved in drafting the law, which would be in line with international best international practice.
A string of corporate scandals and lawsuits has hit the region since the credit crisis and corporations have faced harsh criticism over their lack of transparency. “The draft law has been prepared, we hope to implement governance to the utmost,” Maryam al Suwaidi, deputy chief executive officer for issuance, research and legal affairs told the conference. Companies in the UAE are currently only subject to broad guidelines, however the proposed law willl replace current guidelines making it compulsory for listed companies to abide by all ESCA rules and regulations.
The new law is said to contain “some innovative features” particularly in relation to the role of external auditors.