DFM achieves 96% compliance in listed firms’ result disclosures

The Dubai Financial Market (DFM) has announced that its listed companies have recorded a 96 per cent compliance regarding the disclosure of Q2-2019 results within the deadline of 45 days from the end of the period.

The total number of UAE public and private joint stock companies as well as the dually- listed companies on DFM, which disclosed their second quarter results reached 64 companies out of 67 companies, as both MARKA and Drake & Scull didn’t disclose their results, while Agility submitted preliminary results only. The Exchange submitted a detailed report to the UAE Securities and Commodities Authority (SCA) including the disclosure dates and its remarks on the disclosures according to SCA requirements.

Meanwhile, in line with its focus on enhancing sustainability and promoting environmental, social and governance best practices among listed companies and other stakeholders, Dubai Financial Market (DFM) has successfully contributed to the improvement of corporate governance practices in the United Arab Emirates through its partnership with the Hawkamah Institute for Corporate Governance. In 2017, DFM and Hawkamah signed an agreement to collaborate towards corporate sector reform in Dubai and the UAE through improving governance practices of listed companies. Hawkamah has since then trained over 100 Company Secretaries, and briefed the boards of more than 65% of DFM-listed companies on the role of boards in driving good corporate governance.

Essa Kazim, Chairman of the Dubai Financial Market, said, “Sustainability and good governance are central to our vision. The DFM continues to adopt best practices to ensure that good governance is instilled in our listed companies and within the DFM itself. Our cooperation with Hawkamah has proven successful in terms of improving corporate governance practices at DFM-listed companies.”

Corporate governance is an important source of competitiveness, while sustainability ensures positive contributions to societies at large. When it comes to sustainability and governance, it is the tone at the top that makes all the difference. Boards of directors are therefore at the heart of governance. Company Secretaries play a vital role in ensuring that Boards operate efficiently and effectively, you cannot have a good board with poor-performing company secretary. There is enough evidence to prove that it is challenging to find qualified board members and Company Secretaries in the region. Therefore, Hawkamah took on the assignment of training company secretaries and offering Director Development Programs to prepare new directors for companies as well as organizing special sessions for existing board members.

Ahmad El Sheikh, Chairman of the Hawkamah Institute for Corporate Governance, affirmed, “With the cooperation of DFM, we have made significant strides in terms of advancing the standards of good governance in the UAE, we have trained more boards and graduated more qualified company secretaries. Since its establishment, the Institute has trained more than 1,800 directors and over 200 Company Secretaries. We look forward to continued collaboration to promote corporate and government sectors’ reform.”

In addition to briefing boards about good corporate governance practices as one of the Institute’s advisory services, Hawkamah launched a Foundation Program for Chartered Governance Professionals with ICSA: The Governance Institute of the UK. The programme helps companies prepare the second generation of governance experts and professional company secretaries.

Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of Dhs8 billion, DFM became a public joint stock company and its shares were listed on March 7, 2007 with the trading symbol (DFM).

Hawkamah Institute for Corporate Governance has led the way to better corporate governance in the Middle East and Africa.

The Institute was originally founded as a ‘think-and-do tank’ to research, advocate, advance and develop good governance practices in the region by providing regulators, companies and organisations with practical tools to improve corporate governance. Corporate governance refers to the mechanisms and processes that a company’s leadership employs to guide the organisation. Hawkamah’s mission is to promote corporate sector reform and good governance by assisting regional countries and companies with the process of developing and implementing good and sustainable corporate governance policies, strategies and practices that enhance value creation.

Agencies