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May 01, 2023
Excellencies,
Esteemed Guests,
Ladies and Gentlemen
A very good morning to you all!
It is my pleasure to be here today at the Dubai Global Convention organised by the Institute of Directors with an aim to contribute to building future-ready organisations.
Thank you for inviting me.
Before continuing, I commend the efforts of IOD in nurturing directors of the future and setting in motion a silent revolution in the boardroom. No doubt - far-sighted and holistic boardroom strategies and practices that place good governance, transparency, justice and accountability, at the core, are essential to achieve social, environmental and economic transformation.
Ladies and gentlemen,
The phrase “being future-ready” resonates so much with everything that is going on in the UAE's economic environment right now. As many of you are aware, our economy is currently transitioning to a more flexible and sustainable model that is more resilient and open to the world. Underpinning this transition is the largest set of legislative amendments the country has witnessed in its 51-year history. These amendments aim to develop the legislative structure in various sectors, including investment, trade and industry, as well as commercial companies, family businesses, cooperatives, among many others. These efforts highlight the importance we attach to enhancing the competitiveness of the UAE's private sector in order to establish it as the main driver of our future economy. For example, the Federal Decree-Law no. 32 of 2021 on Commercial Companies was issued to introduce certain amendments concerning Commercial Companies. It specifies the companies that are exempted from the provisions thereof, as well as corporate governance and strategic activities.
The Commercial Companies law further details the approvals and licenses required by companies in order to undertake commercial activities within the UAE; in addition to the company's name, contract, incorporation procedures, and conditions for increasing and decreasing the capital. Furthermore, it clearly establishes the responsibilities of the board of directors, executive management, the authorities of the general assembly, the prerequisites for issuing bonds and instruments, acquisitions and the administrative penalties imposed on a person deemed to be in breach of its provisions. Meanwhile, the Federal Decree Law No. 37 of 2022 on family businesses that was launched in the UAE by the end of last year, addresses challenges faced by family businesses related to governance, succession, ownership, wealth and family dynamics among others. It now serves as a comprehensive and accessible legal framework to regulate the ownership and governance of family businesses and facilitate intergenerational transmission.
Ladies and gentlemen,
Yet another legislation that I'd like to highlight on this occasion is the Federal Decree-Law No. 6 of 2022 on cooperatives launched by H.H Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, last November. It allows cooperatives in the UAE more room to diversify their activities and expand in the country's markets while ensuring complete protection of the participants' rights.
Also supporting the achievement of our future economy goals is the global partnership program, under which we signed the first comprehensive economic partnership with India. The Agreement has now enabled our two countries to work together even more closely to address shared global challenges, achieve shared objectives and build a robust and resilient relationship that is truly future ready.
The law, which also supports the establishment of leading Emirati cooperatives in new economy sectors, marks an important stage in the development of the sector's governance, making it truly future-ready. Other major legislative changes include the new commercial agencies law, Industrial property rights, trademarks law, commercial register and so on. I am glad to add that the impact of these changes is already evident on our economy as the UAE's non-oil foreign trade reached more than AED 2.2 trillion for the first time in its history in 2022, with a growth rate of 17% compared to 2021. Our national non-oil exports also recorded, for the first time, AED 366 billion in 2022, achieving a growth of 6%. Moreover, the achievement of an unprecedented 8.5% GDP growth at constant state prices in the first half of 2022 prompted the UAE Central Bank to raise its expectations for real GDP to reach 7.6% by the end of 2022, and 3.9% in 2023.
Ladies and gentlemen,
Of course, these results motivate us to continue on this path. Also supporting the achievement of our future economy goals is the global partnership program, under which we signed the first comprehensive economic partnership with India. The Agreement has now enabled our two countries to work together even more closely to address shared global challenges, achieve shared objectives and build a robust and resilient relationship that is truly future ready.
Together, we have set the stage for the private sector, entrepreneurs and investors to drive the next phase of growth in the UAE-India economic partnership from the forefront. Against this backdrop, I wish the Institute of Directors all success in its endeavors to empower the new generation of board members and the next generation of leaders. I look forward to the contributions of this forum to the achievement of this goal.
Thank you.
*Excerpts from the 'Guest of Honour Address' delivered by His Excellency Abdullah bin Ahmed Al Saleh, Undersecretary, Ministry of Economy, UAE, at the Opening Session of (Tristar) Dubai Global Convention 2023, held from March 14 – 17, 2023, in Dubai.
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Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
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Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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