The Development of Corporate Governance in the UAE

Abstract :

Corporate governance is the process or structure used to direct and manage the business and financial matters to enhance business and corporate accountability with the ultimate aim of acquiring shareholders ' long-term value, as well as taking into account the interests of other stakeholders. The effective corporate governance system will maximize the shareholders ' return. Therefore, it is important to have a good corporate governance practice in order to control the relationship between other stakeholders, the Board and the management of an organization. Corporate governance can prevent the misuse of its power and interest and the imprudent and non-risk behavior of the employees, as well as to resolve conflicts of interest between the management and the committees of the Board. In addition, corporate governance for the financial sector has important implications for the strength of the entire economy. The UAE has accomplished various extraordinary triumphs authorize by key worldwide reports and markers. The Country positioned 23rd universally in the Corruptions Perceptions Index issued by Transparency International in 2015 though it positioned 35th in 2008, which mirrors the incredible accomplishment in this regard.