Middle East firms 'struggling with independent director appointments'

Businesses in the Middle East are finding the recruitment of independent non-executive directors to be a major corporate governance challenge, according to an expert.

Nasser Saidi of local governance organisation Hawkamah told the Financial Times that progress in this regard has been slow, with private sector companies regularly inquiring about where to find truly independent directors.

According to the news publication's report, the family-owned nature of many businesses operating in the region has placed restrictions on the implementation of robust internal controls.

Mr Saidi noted that Hawkamah's sister organisation the Institute of Directors Mudara has trained more than 150 directors to counteract this, but this resource is yet to be tapped fully.

"Identifying and engaging independent, non-executive directors to serve regional boardrooms is definitely one of the corporate governance issues faced by the region," he said.

Last month, Hawkamah allied with government agency Dubai SME to launch a new corporate governance code for local small businesses.