Hawkamah
Advisory

Hawkamah partnered with the OECD and worked with MENA-OECD Task Force to develop the Policy Brief on Improving Corporate Governance of Banks in the Middle East and North Africa, which was launched in November 2009. The Policy Brief proposed recommendations to policy makers, banking supervisors, banking associations and individual banks in the region.

English - Arabic

Corporate governance and insolvency are closely linked. As acknowledged by the OECD Principles of Corporate Governance, the corporate governance framework should be complemented by an effective, efficient insolvency framework and by effective enforcement of creditor rights. Companies with a good corporate governance record reduce the risks of lenders and are often able to borrow more and on more favourable terms than their competitors with a poor governance record. Moreover, corporate governance in insolvent enterprises poses specific challenges. Legal frameworks often impose on directors of insolvent enterprises to act in the interests of creditors, and provide the latter with specific role in the governance of distressed debtors.

In order to take stock of the existing MENA frameworks and practices, raise awareness on existing international guidance on insolvency and establish a network of regional insolvency experts, the OECD and Hawkamah organised a meeting on Developing Sound Insolvency and Creditor Right Systems in the MENA. In doing this, the OECD and Hawkamah explored avenues for co-operation with its international and regional partners. The input of the private sector was sought in co-operation with INSOL International, the international organization of insolvency professionals.

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1st Task Force Meeting Synthesis Note - May 21, 2007, Cairo

Study on Insolvency Systems in the Middle East and North Africa.

The 2009 regional symposium on insolvency laws and creditor rights systems organized by Hawkamah, in association with the OECD, the World Bank Group and INSOL International on May 26-27, 2009 in Abu Dhabi, UAE (Symposium) brought together officials from MENA countries. Towards the end of the 2 day Symposium, a declaration called the ‘Hawkamah Declaration’ was issued affirming the commitment to modernize insolvency regimes in the MENA region.

One of the key resolutions o the Hawkamah Declaration was the commitment to establish a regional forum on insolvency reform, the purpose of which is to engage, educate and inform stakeholders about insolvency reform and to serve as a platform for sharing international and regional best practice and experiences.

Founded by Hawkamah, The World Bank Group, INSOL International and OECD (Founding Members) in 2010, the Forum For Insolvency Reform in MENA (the "FIRM") is a Membership organisation organised around periodic meetings that facilitate and deepen the dialogue on Insolvency Reform in the region. The FIRM is the only platform dedicated to discuss and debate Insolvency Reforms in MENA. The FIRM was officially inaugurated on the occasion of the INSOL International Regional Conference, at a first regional FIRM roundtable organized by Hawkamah, in association with the World Bank Group, OECD and INSOL International on February 24, 2010 in Dubai. The meeting brought together officials, policy makers and representatives from the UAE, Turkey, Tunisia, Oman, Egypt, Qatar, Saudi Arabia, Lebanon and Jordan.

The FIRM Communique was also issue don this occasion laying down the areas of focus for the FIRM which includes holding organizing capacity building programs for the Judiciary (link to the MENA JC events).

The Hawkamah Declaration English | Arabic

FIRM Communique

Brief about the FIRM

MENA Judicial and Financial Colloquia

2011

2012

2014

FIRM NEWSLETTER – 2014

Hawkamah, in cooperation with leading private equity firms in the Middle East and North Africa region, have developed draft guidelines for the PE industry in the region.

The aim of these draft guidelines is two-fold. Firstly, to support PE firms in diffusing corporate governance practices within their portfolio companies by formulating the basic governance principles that are relevant to the PE backed companies in the MENA region. Secondly, the objective is to identify the best governance practices within the PE firms themselves, especially in relation to stakeholder confidence building measures such as transparency and disclosure.

The PE Task Force believes that MENA private equity should play a critical role in diffusing good corporate governance practices across portfolio companies in terms of board structures, administrative procedures, disclosure requirements and minority interest protection. These facilitate the conversion from family firms into institutions and from non-listed to listed companies from which all parties and stakeholders benefit: surveys show that investors are willing to pay a premium for companies practicing good corporate governance.

Hawkamah in partnership with the Arab Forum of Insurance Regulatory Commissions (AFIRC) and with the support of the Financial Services Volunteer Corps (FSVC) as well as with a panel of volunteer experts developed a Policy Brief for Arab Insurance Industry. This Policy Brief, which was launched in 2008, sets out key recommendations for the insurance sector in the MENA region.

HAWKAMAH POLICY BRIEF ON CORPORATE GOVERNANCE FOR THE INSURANCE INDUSTRY IN THE MENA REGION

Given the important role of state ownership in MENA countries, there is a need for a clear policy for enterprise reform relying on improved corporate governance of state-owned enterprises. Such policy is important for enterprises to be privatised as well as for those remaining under total or partial state ownership. By improving the process of decision making and control by the state, good governance can improve SOEs performance and competitiveness, and level the playing field between state-owned and private enterprises. In many instances, better performing SOEs can have positive fiscal implications, insofar as government budgets are all too often called to the rescue of large SOEs.

Good governance provides better transparency in corporate structures and operation and reduces the opportunities for political interference in the interactions amongst government, management and stakeholders. Thus, good governance of SOEs is conducive to better public sector governance in general, and to reducing corruption.

As one of the Task Forces endorsed by the Dubai Declaration issued in November 2006, the Task Force on Corporate Governance of State Owned Enterprises constituted developed a questionnaire on the basis of the OECD approved Guidelines on Corporate Governance of State-owned Enterprises which was circulated to 12 MENA jurisdictions (Ministries and regulatory agencies from Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Pakistan, Qatar, UAE, Yemen) to study the Corporate Governance Frameworks of MENA SOEs. The Task Force discussed its findings in meetings and electronic consultations.

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