Middle East corporate governance rules tighten

Governments throughout the Middle East are calling for tighter corporate governance regulations in the financial sector.

That is according to the Hawkamah Institute of Corporate Governance, which is working with regulatory authorities in Kuwait, Saudi Arabia and Oman to enforce stricter legislation in regards to board accountability, remuneration and succession, Emirates Business reported.

Members of the Gulf Cooperation Council have expressed increasing interest in enforcing new governance rules, following the outbreak of the financial crisis and a series of board-level scandals in the region.

This issue is an important facet of all international business as stock exchange-listed organisations are required to disclose corporate governance information in their annual reports and accounts.

Nikolai Nadal, director at Hawkamah Institute of Corporate Governance, believes Middle East governments want to send "strong messages" to businesses.

According to the news provider, he said: "Measures will vary from country to country. We're suggesting certain proposals to be mandatory. The framework is there."