08 February 2015, Dubai, UAE: The UAE’s Securities and Commodities Authority (SCA) recently issued the first Investor Relations (IR) guidelines for publicly listed companies. The guidelines make it mandatory for listed companies to implement a range of reporting and disclosure standards in order to ensure that a certain level of corporate transparency towards the investment community is maintained.
“We applaud SCA for embarking on the issuance of the Investor Relations guidelines and thank the Authority for taking the leap forward to introduce them into the market place,” commented Oliver Schutzmann, Chairman of the Middle East Investor Relations Society. “We expect that making the Investor Relations function compulsory for companies listed on UAE securities markets and establishing these guidelines for those companies will help the market adhere to specific requirements that contribute to higher transparency and disclosure standards. The Society hopes that other regional exchanges will follow the UAE’s lead to the benefit of capital market participants.”
The IR guidelines, which are divided into mandatory and optional guidelines, were issued to all UAE listed companies. Companies were instructed to implement the mandatory guidelines before the end of 2015.
The mandatory guidelines state that each corporate must appoint a dedicated IR officer, include a complete IR section on its corporate website where all relevant information related to IR including financial disclosures, annual reports, share price information and Annual General Meeting/ Extraordinary General Meeting minutes should be published, and provide an up-to-date version of the corporate investor presentation available for download to shareholders. The optional guidelines encourage companies to engage with the investment community by hosting conference calls in connection with financial results publications, arrange roadshows and maintain regular contact with analysts and investors.