Abu Dhabi will alter corporate governance in 2010

The introduction of a new corporate governance law in Abu Dhabi will take effect from the second quarter of 2010.

All publicly-listed corporations in the Middle East state will have to exercise full transparency from April next year under a new law being drafted by the Emirates Securities and Commodities Authority (Esca).

Specifically, the regulator suggested that the new legislation will seek to clarify previously ambiguous corporate governance laws on issues such as board appointments.

Presently, the majority of Abu Dhabi's corporate regulations are voluntary.

Mariam Al Suwaidi, deputy chief executive of issuance, research and legal affairs at Esca, claimed that these changes will benefit corporations in the region.

He told Emirates Business: "With the full implementation of the updated rules and tools, hopefully we will soon be able to achieve our targets and be on a par with advanced countries in terms of corporate governance."

Yesterday (October 14th), the Hawkamah Institute of Corporate Governance suggested that governments throughout the Middle East are calling for more restrictive regulations in the financial industry.