Corporate Governance Code

In 2007 the UAE Securities and Commodities Authority issued Decision 32/R/2007 concerning a Corporate Governance Code for Joint Stock Companies, thereby introducing a statutory corporate governance regime to the United Arab Emirates. Applicable companies were given three years to adopt the new regime.

In July 2009 the initiative was formalized by Ministerial Resolution 518/2009 Concerning Corporate Governance Rules and Corporate Discipline Standards, which makes corporate governance a mandatory requirement for all companies and institutions whose securities have been listed on a securities market in the United Arab Emirates and for all their boards of directors.

The ambit of this resolution excludes companies and institutions which are wholly owned by the UAE federal government or the local government. In addition, the Securities and Commodities Authority is empowered to grant a waiver from some of its corporate governance obligations to companies in which the government is a stakeholder.

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