RIYADH – Collaboration between the Gulf Region’s private sector’s and government is fundamental to boosting corporate governance frameworks and enhancing the region’s economic growth – this was the key message delivered at the inaugural ‘Governance in Focus’ forum, which took place in Riyadh at the King Abdullah Petroleum Studies and Research Center (KAPSARC).

The event was convened to address the essential role that the private sector plays in forging good governance strategies that are the foundation of resilient economies, and essential as the Gulf Region’s economies undergo major transformations.

Private wealth in the Gulf Region has surged to over $8 trillion and is expected to reach $12 trillion by 2021. With 85% of the Gulf Region’s non-oil GDP generated by family businesses, the region expects to see a generational transfer of wealth of over $1 trillion over the next decade. In safeguarding the resilience of this passage of vast economic value, strong corporate governance shall be vital.

In his keynote address to an audience of 500 leaders in business, government and the philanthropic sector, Amin Nasser, President and CEO of Saudi Aramco, said: “It is a privilege to be working with the Pearl Initiative in promoting higher corporate governance standards. Saudi Aramco has been global from our very beginning – more than eight decades ago. International standards of governance have always been an integral part of what we do and how we do things. In our efforts to achieve Saudi Vision 2030 and align ourselves with its aspirations, the Kingdom’s corporations and entities - regardless of size - now have the opportunity to apply or redefine its set of governance at the highest standards, which is vital for the economic transformation that’s currently underway in the Kingdom.”

Nasser emphasized the role of corporate governance in maintaining the highest standards of ethical conduct and promoting commitment to effective oversight, leadership, and reporting.

Badr Jafar, Founder of the Gulf-based Pearl Initiative and CEO of Crescent Enterprises, said in his welcome remarks: “This forum has brought together multi-stakeholder leaders from across the region and internationally to deliberate some of the most pertinent issues affecting our business environment today. We at the Pearl Initiative are deeply honoured to work with Saudi Aramco to shine a light on the various important roles that the government, business and philanthropic sectors need to play in creating corporate governance frameworks that support the competitiveness, inclusiveness and sustainability of our region’s economies. The forum marks the beginning of the Pearl Initiative’s strategic relationship with Saudi Aramco, an invaluable member of our growing network of partner companies from across the Gulf Region committed to a vision of thriving economies underpinned by a private sector that embraces good governance as a pillar of sustainable growth”.

The forum’s theme was ‘Boosting Competitiveness in a New Business Paradigm’ and focused on the business case behind corporate governance and how good governance frameworks are essential to the realization of national agendas across the region, including UAE Vision 2021 and Saudi Vision 2030. Featuring four plenary sessions and two specialised workshops, prominent speakers from across the region and internationally addressed corporate governance frameworks from a variety of stakeholder perspectives.

The opening plenary “Private-Public Dialogue on Governance” brought together esteemed panelists HE Dr. Hamad Sulaiman A. Al-Bazai, Vice Minister of Finance of Saudi Arabia; HE Ahmed Ali Al Sayegh, Chairman, Abu Dhabi Global Market; Alain G. Bejjani, CEO, Majid Al Futtaim Holding; Rick Haythornthwaite, Chairman, MasterCard; and Lubna S. Olayan, Deputy Chairman and CEO, Olayan Financing Company. The insightful discussion explored practical ways in which the public and private sectors can support each other to nurture governance frameworks that will build resilience in regional economies and provide a solid foundation for sustainable economic development and job creation.

The next panel “Governance for Diversification: Supporting National Champions” was joined by respected leaders Dr. Khaled Al-Sultan, Rector, King Fahd University for Petroleum and Minerals; Yousef Abdullah Al-Benyan, Vice Chairman & CEO, SABIC; Jamal Fakhro, Managing Partner, KPMG and First Deputy Chairman, Shoura Council, Bahrain; and Joaquim Levy, Managing Director & CFO, The World Bank Group. The discussion addressed the evolution of governance in state-owned enterprises, and the effect corporate governance frameworks of national champions have on the governance practices of their partners, subsidiaries and suppliers.

The effects that digitization has on Gulf economies were addressed on the third panel “Governance in a Digital World: Creative Disruption and New Technologies.” Panelists included Tony Bates, CEO of Growth, Social Capital, Magnus Olsson, Co-Founder & Chief Experience Officer, Careem; Abdulrahman Tarabzouni, CEO & Managing Director, STV; and Will.i.am, renowned musician & innovator. Moderated by Fadi Ghandour, Executive Chairman of Wamda Capital, the risks to business of cyber security and the evolving role of the regulator in a digital world were debated.

The importance of governance to global investors was clearly evidenced during the final plenary panel titled “Governance for Long-Term Value Creation: ESG and Social Capital”.

The discussion highlighted the changing expectations of investors and the actions required of regional companies to adopt effective environmental, social and governance practices to boost investment opportunities.

The forum also hosted two important workshops, bringing together international and regional experts to explore governance in philanthropic institutions within the Gulf Region, and governance in Micro, Small and Medium Enterprises (MSMEs). — SG