Securities and Commodities Authority (SCA) Chief Executive Officer, Dr. Obaid Al-Zaabi, stated that «the Authority has given more emphasis to the supervision of public shareholding companies, where it created dedicated departments, which started its operations effectively this year, and a number of listed companies have been transferred to the investigation and the Public Prosecution. In the absence of good corporate governance, it has set up financial investigation teams, the first of its kind in the Middle East.

Non-performing companies

He added that «financial investigation teams have already been sent to a number of companies that are troubled or have been questioned or have financial problems, as well as the establishment of special sections to monitor the listed companies, as well as to monitor news and receive reports, as well as corporate governance and auditors».

Al Zaabi, in remarks to reporters in Abu Dhabi, that «the Authority is working in cooperation with the Ministry of Human Resources and Emiratisation to implement the strategy of the Council of Ministers on Emiratisation, in addition to a number of previous initiatives taken through government accelerators, and that the Authority worked in an initiative focused on raising "The percentage of Emiratisation in the real estate sector, and we succeeded in this."

He pointed out that there is now an initiative from the Board of Directors of the Authority to localize the human resources functions in public shareholding companies, and there is guidance to work quickly to create the legislative and technical environment for these functions, and resettle them as soon as possible.

companies laws

He stressed that the Authority, through a special committee formed for this purpose, has submitted a proposal for amendments to the Companies Law, which would allow the development of the venture capital industry in the market, as well as the conditions of companies 'transformation, including the opening of the percentage of sale of owners' shares, which does not exceed 30%. To be in line with international best practices. The proposals also include amendments to mergers and acquisitions, and the organization of a special purpose company (SVP) that allows for the creation of a sophisticated global market for sukuk, as well as other proposals in line with international best practices in the working methods and regulation of securities markets.

Al-Zaabi pointed out that the Commission has submitted its proposals to the Ministry of Economy, where they are discussed and submitted to the concerned authorities, in accordance with the procedures in place to amend the laws in force in the country.

He pointed out that the most prominent of these amendments are the availability of systems of acquisition and integration in the best possible formula in accordance with the best standards in force globally, as well as providing systems for the transformation of companies and capital risk and the sukuk industry and remove legal barriers to them.

Acquisition systems

He pointed out that the acquisition systems and companies are not regulated in the law of companies, and acquisitions are treated as a "strategic partner", which must be developed, to allow the full application of the acquisition system, as well as the Commission's proposals, in accordance with the new amendments, add and develop items On the articles related to the general assembly meeting, organizing the extraordinary general assembly meeting, adding legal possibilities to it besides developing the items related to investment management.

Al-Zaabi added that «the Commission has also addressed the issue of representation in public associations, where the proposal has been approved (proxy) proxy, and that work is currently underway to develop mechanisms to represent the minority in the meeting of the general assemblies, in addition to the implementation of the marking of the distinction of losing companies, According to the proportion of losses by ».

He continued: «the Commission is considering, now, the organization (put companies suspended from trading) on ​​a watch list dedicated to them for three years, under the supervision of a committee of the Commission and capital markets».

The CEO of the JSC pointed out that the JSC is also working on what is known as the new “Code of Governance”, which is expected to be put in place to get feedback on the dealers and interested parties and to receive opinions on it soon, and that this development will represent a qualitative leap for the Authority and the financial markets. Environmental Standards, Social Responsibility and Governance of ESGs, new committees and new controls on Board actions, minority rights and representation of women on boards.

Al Zaabi explained that the Authority is also working to make a qualitative leap in the organizational structure and supervision, and the regulation of (derivatives brokers) in addition to the development of securities brokerage companies to turn them into integrated financial services companies have the confidence of foreign investors, pointing out that studies that arrived to the Authority shows that the investor The foreigner sees weaknesses in securities brokerage firms in their current state, as they do not have integrated services, as well as a lack of risk hedging mechanisms.

He explained that the new rules ensure better performance of intermediaries, and ensure the provision of integrated financial services, including mechanisms and an internal system for risk management, liquidity, investment services and other systems and standards, so that these companies have an integrated financial services system.

He said that for the companies «brokerage», it will be better organized work, pointing out that the Commission is considering several requests to put some companies for initial subscription, as well as approving a request for a new acquisition.

Cash clearing

Securities and Commodities Authority (SCA) Chief Executive Officer, Dr. Obaid Al Zaabi, has confirmed the completion of a cash clearing system between the stock markets in Abu Dhabi and Dubai, in cooperation with the Central Bank, pointing out that the system has been successfully tested, and that the Authority and the markets are awaiting the approval of the Central Bank, to start working.

He added that the investment law also provides more openness with regard to the requirement of foreign ownership of companies, providing all the requirements for promotion, noting that two systems have been submitted to the relevant authorities for approval, namely preferred shares and crowdfunding.

Acquisition regulations and companies are not regulated in corporate law.