Corporate Goverance Updates issued by the SCA for listed joint stock companies in the UAE

In recent times, there has been increasing focus on strengthening governance across companies in the United Arab Emirates (UAE), particularly listed public joint stock companies. Since its inception, the Securities and Commodities Authority (SCA) has been keen on strengthening the legislative structure through their initiatives, issuance of regulations and instructions that further enhance the governance of companies operating in the securities market. With the ultimate focus of maintaining transparency and enhancing stakeholders confidence, SCA continuously monitors the key developments worldwide in the field of strengthening governance and adopting principles that contribute to achieving its vision. In its initiative to further develop and enhance corporate governance standards, the Joint Stock Companies Governance Guide (“Guide”) issued by the SCA has been amended pursuant to the decision of the Chairman of the Board of the SCA [No.(02/RM) of 2024] as issued on 10 January 2024 and enforced on 16 January 2024. The amendments are focused on further enhancing the governance in order to protect the interest of shareholders. Our thought leadership publication issued in February 2024 focussed on key amendments to the Guide and outlined insightful perspectives on internal control, risk management, compliance, corporate governance and more In this publication, we have further detailed our analysis of the amendments to the Guide and related implications for the companies in UAE. We look forward to continuing to engage with you.