I would like first to note that speaking about the modern approaches to the governance of public joint-stock companies is in effect a reflection of the significance of the concept of governance and the changes it has seen, and a recognition of its role in fostering the principle of good management and bringing success to economic enterprises in general.

It is notable that the GCC regulatory authorities and capital markets were not only first among their global counterparts in adopting governance controls, but also first to take initiative in implementing governance standards over the past fifteen years, given their paramount importance in acting as the first line of defense against any crisis that public joint-stock companies may face (by creating an internal control system within listed companies and having the corporate management implement the principles of good management). They also act as the first line of defense for capital markets in general since governance contributes to the creation of a favorable business environment, thereby enhancing the confidence of market participants and attracting more foreign investors.

For its part, the Securities and Commodities Authority (SCA) took initiative early on to enforce the rules of good governance-as a strategic objective-on all companies and institutions operating in the country, believing that these rules are important to establish institutional discipline and that they have a role to play in promoting transparency, fairness, autonomy, and sound business practices.

To realize this strategic objective, the SCA introduced controls for the governance of public joint-stock companies in 2007 in line with the principles adopted by the relevant international organizations, all the while bearing in mind the legal framework and the economic and social conditions in the country.

In the wake of this, Cabinet Resolution No. 518 of 2009 on Governance Controls and Institutional Discipline Standards was issued in accordance with the standards of the International Organization of Securities Commissions and the Organization for Economic Cooperation and Development and in a manner consistent with the World Bank's ease of doing business report and the World Economic Forum's competitiveness report. The resolution was amended in 2014 and 2015.

Following this, the SCA issued Decision No. (7/Chairman) of 2016 on Institutional Discipline Standards and the Governance of Public Joint-Stock Companies in line with the best international practices. Its implementation helped rank the country high on global competitiveness indexes, such as the ease of doing business index published by the World Bank, and make its investment environment more attractive to foreign investors.     

Last year, the SCA Board Chairman's Decision No. (3/Chairman) of 2020 Approving Public Joint-Stock Company Governance Guide was issued to replace the SCA Board Chairman's Decision No. (7/Chairman) of 2016 on Institutional Discipline Standards and the Governance of Public Joint-Stock Companies. The decision represented a qualitative leap in the development of the governance system of public joint-stock companies as it established an orderly, clear, and effective legal framework to regulate the affairs of these companies in a manner that guarantees the rights of all stakeholders and enhances the regulatory role performed by the SCA.

In fact, I do not want to go on and on about the various aspects and dimensions of governance, but I trust that the SCA will continue its endeavors to establish good governance practices and promote institutional discipline in line with the best international practices and in a manner that promotes transparency, fairness, autonomy, and sound business practices.