UAE encourages private sector inputs on legislations

The UAE is using a public-private dialogue as it moves to revamp its legislation, the director general of Ministry of Economy said.

"To ensure full participation of the business community, the Ministry of Economy constantly encourages the private sector to provide comments and inputs on the drafts of those laws," Mohammed Ahmed bin Abdul Aziz Al Shehi, said.

He was referring to the new laws which will regulate companies, foreign investment, competition, commercial arbitration and industry affairs.

Al Shehi said these new laws are part of a comprehensive framework to provide high quality legislations and regulations and to align the local business environment with the UAE strategic vision for 2021.

He however declined to say when these draft laws will be finalised and enacted.

"I do not want to give the timeline, it is up for the minister of economy to comment," Al Shehi said on the sideline of a corporate governance forum on Sunday. "Some are in the technical committee...they are in different stages."

In May, it was reported that eight of the 12 draft laws are already in the final stages.

This includes Commercial Companies law, Competition law, Auditors law, Arbitration law, Investment law, Industry law, Certificate of Origin law, and Anti-fraud law.

He said many countries in the Middle East have a "long way to go" to feel confident that they have established sound fundamentals in corporate governance.

"But the UAE is one the countries that made a positive start much before the onset of the global economic crisis," he said.

Al Shehi pointed out that the Securities and Commodities Authority in the UAE had issued the regulation for corporate governance and institutional discipline standards for public joint stock companies.

Emirates Securities and Commodities Authority (SCA) outlined a transitional period of three years for the implementation of these standards to make it obligatory.

Hamad Buamim, director general of Dubai Chamber of Commerce and Industry, said as Dubai aims to position itself as a global player and a hub for foreign FDI, it is essential that the emirate offer high quality standards of governance.

"It is a matter of survival," Buamim said. "As Dubai continues to liberalise its economy and introduce swift market reforms, issues of governance, transparency and accountability have a crucial role to play in positioning the region as a credible player of the future."