GCC corporate governance is developing rapidly and the region can act as a global benchmark, said Emaar Industries and Investments (EII) chief executive officer Dr Ahmad Khayyat.

Dr Khayyat's comments come on the back of last week's research study conducted by a leading global asset manager, which concluded that 'emerging markets are still lagging behind practices' in more developed economies.

However, Dr Khayyat is adamant that the region is on course to raise the standard of corporate governance in emerging markets.

'Despite the concerns regarding corporate governance in emerging markets this region is developing at a rapid rate on a number of levels. For example, Emaar Industries and Investments has ensured that not only within our organisation but throughout all of our subsidiaries, there must be an elevated standard when it comes to transparency, accountability and business conduct,' said Dr Khayyat.

'To this end we have established a 'corporate governance' manual that has been ratified by all board members and subsidiaries and outlines the best practices appropriate for a growing global brand,' he added.

Within the newly-established Corporate Governance Handbook distributed organisation wide, EII stipulates a code of business conduct, which governs the company and its subsidiaries' commercial operations and the conduct of directors, employees, consultants and any person representing the company.

Ethical conduct throughout the corporation, including oversight, development, and review and monitoring of the company's code of business conduct and ethics, is crucial to attracting partners from overseas according to Dr Khayyat.

'One of the apprehensions of companies operating in more mature markets is the ability of emerging markets to support ethical operations within its organisations,' said Dr Khayyat.

'The GCC cannot afford to be tarred with the same brush as other emerging markets and it is important for companies such as EII to set this benchmark in ethical business practice in order to portray the correct image of the Middle East.'

Other corporate governance initiatives at EII include internal and external auditing, risk management, measurement and accountability.-TradeArabia News Service