The Ministry of Economy has issued a decision that is expected to impact many businesses in the UAE. The decision outlines the criteria that companies with earnings exceeding Dh50 million must meet in order to comply with the law. This move comes as part of the UAE government’s efforts to strengthen the economy and promote transparency and fairness in business operations.
According to the decision, companies with earnings exceeding Dh50 million must have a solid financial and legal framework in place to ensure that they are operating in compliance with local laws and regulations. The decision specifies that these companies must have robust financial reporting systems that provide timely, accurate, and transparent information to stakeholders.
The Ministry has also stipulated that companies must have a sound corporate governance structure in place, with clear lines of responsibility and accountability. This includes having a board of directors that is independent and capable of making strategic decisions in the best interests of the company and its shareholders.
Additionally, the decision requires companies to have a comprehensive risk management framework that identifies and manages risks associated with their business operations. This includes developing contingency plans for potential risks and having a system in place to monitor and manage those risks on an ongoing basis.
The decision also emphasizes the importance of social responsibility, stating that companies must have a clear policy on social responsibility and demonstrate their commitment to sustainable development. This includes engaging with stakeholders to understand their needs and concerns, implementing measures to protect the environment, and supporting social and community initiatives.
Commenting on the decision, His Excellency Sultan bin Saeed Al Mansouri, Minister of Economy, said, “This decision is in line with the UAE’s efforts to enhance transparency, accountability, and sustainability in the business sector. It will help to strengthen the country’s economic competitiveness and create a more favorable business environment for both domestic and foreign investors.”
He added, “Companies that meet these criteria will not only be in compliance with the law, but they will also be better positioned to attract investment, build trust with stakeholders, and achieve long-term success.”
The decision has been welcomed by many business leaders in the UAE, who see it as a positive step towards promoting a more transparent and responsible business environment. They believe that it will help to level the playing field and create a fairer market for businesses of all sizes.
Majid Al Futtaim, the CEO of the leading retail and entertainment conglomerate that bears his name, said, “We welcome the Ministry’s decision and believe that it will contribute to the sustainable growth of the UAE economy. At Majid Al Futtaim, we have always been committed to operating in compliance with local laws and regulations, and this decision reaffirms the importance of this approach.”
He added, “We also believe that the decision will encourage other companies to adopt best practices and improve their governance, risk management, and social responsibility frameworks.”
The Ministry’s decision comes at a time when the UAE is experiencing a period of significant economic growth and transformation. The country has set ambitious targets for economic diversification and is working to position itself as a leading global business hub.
In this context, the decision is seen as a timely and necessary move to ensure that companies operating in the UAE are upholding the highest standards of business conduct and contributing to the country’s long-term economic success.
Overall, the Ministry’s decision is expected to have a positive impact on the UAE’s business landscape, promoting transparency, accountability, and sustainability in the corporate sector. It is hoped that it will encourage companies to adopt best practices and work towards building a more responsible and prosperous business environment for the benefit of all stakeholders.
