Corporate Governance: For a Better Future
Yemen stands at a crossroads and needs sustained economic growth and increased job creation to serve the needs of its people. To do this, Yemeni businesses must attract new investment and increase profitability. A critical component to this is the promotion of good corporate governance practices. On a national level, corporate governance improves the investment climate, attracts foreign investors, and prevents major financial crises. On a company level, corporate governance increases access to capital, maximizes profit, manages transition within family-owned businesses, and decreases the incidence of corruption. At its core, corporate governance rests upon the principles of transparency, accountability, fairness and responsibility. In response to this need, the Yemeni Businessmen Club launched an initiative to promote awareness about the importance of corporate governance for Yemen and help companies implement best practices. In April 2008, a Task Force on Corporate Governance was established and key stakeholders from the public and private sector are working together to promote acceptance of good governance practices. This initiative has broad support from key institutions. At a major conference in February 2008, Minister of Industry and Trade, Dr. Yahya al-Mutawakel stated, “Corporate governance is an essential condition to the establishment of a stock market, attracting major investment, and developing national reserves which will lead to combating unemployment and reducing poverty.”
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