Why do we need Corporate Governance?
With increased global competitiveness, the growing market in Yemen is faced with the challenge of attracting and retaining investment in order to participate more fully in the global economy and address mounting demographic concerns. Increasing awareness and implementation of good corporate governance practices can improve the investment climate and promote the development of a vibrant private sector and capital market. However, in order to advance corporate governance, stakeholders must find and coordinate ways to implement principles that produce internationally acceptable standards and reflect local business realities such as the predominance of family-owned firms.
The interest in corporate governance is due to globalization, as investors are now reaching out to foreign countries to establish businesses. Foreign investors are depending on corporate governance because it is building legal protocol that is ensuring businesses to be accountable.
Businesses are becoming aware of the benefits corporate governance and responsibility provides their company and their nation. The regions’ demographic demonstrates that 50% of the Arab population is between the age of 15-20, making them the future labor force. By creating effective corporate governance and responsibility in the region, businesses are ensuring that future generations will have jobs as well as protecting their economies.
Developing the role of the board of directors is a strategic tool for sustainable business development to overcome obstacles in the MENA region along with corporations' responsibilities and issues related to sustainable development.
Effective corporate governance and responsibility are becoming central to achieving success in the global business environment and the development of the MENA region economic structure.
Following on the concept that business environment in the MENA region is unique in the sense of cultural structure and needs, global concepts such as corporate governance and responsibility, developed and implemented abroad need to be localized to be effective tools.
The success of the endeavor to create a localized approach to global concepts is dependent on understanding the local environment and empowering stakeholders to take an active role in the shaping of effective corporate governance and responsibility practices.back to top