Dubai SME, Hawkamah to develop corporate governance code

Dubai SME, the agency of the Department of Economic Development (DED), Government of Dubai, entrusted with the development of the small and medium enterprise (SME) sector, has joined hands with Hawkamah — The Regional Institute for Corporate Governance — to develop a code for SMEs on Corporate Governance. The first-ever code with key principles and practices will be launched at a Conference for Corporate Governance for SMEs to be held in Sept.26, 2011, in Dubai. It will serve as a guide for SMEs in various stages of growth to embrace best practices in corporate governance. The aim is to create awareness amongst SMEs on the importance of adopting a basic level of corporate governance that will make them more robust, better manage risks, be more bankable and investable. It is also hoped that the promotion of corporate governance will make SMEs realise that corporate governance is not just something good to follow but is a must-have to grow and progress sustainably. A two-fold strategy comprising Promotion & Awareness Creation in the first phase and Capability Development in the second phase has been adopted to enable change and development for SMEs. Under promotion and awareness creation, Dubai SME will work with key stakeholders to promote corporate governance to the general SME population. A key tool is a guide book on CG for SMEs which will cater to micro, small and medium sized SMEs. The message is start early, start now. For the medium and growing SMEs that aim to expand through new external capital, more complex aspects of corporate governance will be promoted such as awareness on board structures and composition, share ownerships and listing preparation in the Equity Markets. Other promotional projects and activities include Awards for SMEs with Best Practices in Corporate Governance and for Best SME Annual Reports. Dubai SME has engaged Hawkamah to develop the Code of Corporate Governance for SMEs based in Dubai, using the official definition of SMEs developed by Dubai SME and the Dubai Statistics Centre. The idea is to customise the corporate governance code in the economic and business context of Dubai/UAE’s business requirements. The code, which will be launched on Sept.26, will then be used as a basis to develop other products like tool kits and training programmes. Post-launch, various seminars and road shows will be organised to create greater awareness. Under capability development, Dubai SME will work with partners to launch diagnostic tool kits and training sessions. It has tied up with the International Accounting Standards Board (IASB) for a train-the-trainer programme on International Financial Reporting Standards (IFRS) for SMEs. From / Gulf today