UAE corporate governance decree welcomed by ACCA

The Association of Chartered Certified Accountants (ACCA) has voiced its support for new measures to boost corporate governance in the United Arab Emirates (UAE).

Last month saw Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, issue a decree aimed at strengthening corporate transparency and the principles of board composition.

Directors will be prohibited from serving on more than four company boards at the same time, while board members of federal institutions will have to disclose their shareholdings on an annual basis.

Commenting on the decree, ACCA's head of the Middle East Stuart Dunlop said the tighter rules reflect the UAE's burgeoning status as "one of the key international business hubs".

He suggested that new measures were required to ensure the region's directors devote as much time as possible to their duties in the boardroom.

"Limiting the number of boards on which an individual can sit is an important step to achieving that goal," Mr Dunlop added.