New governance code for Dubai SMEs announced
A new corporate governance code is in the works for smaller firms in Dubai. Dubai SME, a government agency, and Hawkamah, a governance think tank, have joined forces to develop the code, which they hope will improve practices at small and medium-sized enterprises (SMEs).
The code will contain key principles and practices but will not be binding, the two parties say in a statement.
Rather, it will ‘serve as a guide for SMEs in various stages of growth to embrace best practices in corporate governance’. Set for launch on September 26, the code ‘will then be used as a basis to develop other products like tool kits and training programmes’. The training events planned include listing preparation sessions in collaboration with the International Accounting Standards Board.
‘Good corporate governance practices amongst various enterprises, including SMEs, have added value to the quality of operations and management, increased access to financing, lowered cost of capital, and ensured sustainability of the enterprise,’ says Nasser Saidi, Hawkamah’s executive director, in the statement.