Dubai Financial Market has formed an investor relations (IR) department in a major step to enhance relationships with investors and to reinforce transparency and corporate governance.
The department will enable the investors to communicate effectively with the management and stay updated of the latest developments. This is the latest addition to DFM, as the company's board of directors adopted a new organisational structure in November 2008, when the department commenced its services.
Although the IR practice in the Middle East is a relatively new concept, the new department is consisted of a highly qualified team with global experience. The department is run by Rasha El Hassan Chamut, an IR practitioner who had worked with blue chip international firms in the city district of London.
The department initiated its activities through working on a number of important projects which will have a positive and direct effect on DFM's relationship with shareholders.
It has developed an enhanced IR page on DFM's website in cooperation with Thomson Reuters. The page, to be launched soon, will provide shareholders with the most updated information about the company's performance, financial results, main indicators and contact details.
Commenting on this new development, Essa Kazim, Executive Chairman of DFM, said: "The IR department is just another initiative to cope with investor's expectations and provide them with the most updated information about the company that enables them to take decisions accordingly."
ADX for standard IR practices
Abu Dhabi Securities Exchange (ADX) has urged its listed companies to adopt internationally recognised investor relations practices that would not only improve a firm's communication with its shareholders but also encourage more committed long-term institutional investors to enter the market.
Speaking at a workshop, jointly hosted by ADX and Hermes Equity Ownership Services, Tom Healy, Chief Executive of ADX, said: "Excellent investor relations are essential to listed companies across the world, no matter which cultural or political environment they operate in.
"The most important principle of good investor relations is transparency. Firms have an obligation to communicate clearly with their investors to ensure they make their decisions based on fact and analysis, not rumour."
Healy also explained how investor relations practices can be applied to encourage a certain type of shareholder. Many companies, for example, would benefit from having long-term, institutional investors instead of just being dominated by private investors, he said.
"Institutional investors tend to be more committed and long-term in their investment outlook," Healy added.
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