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The Department of Economic Development (DED) in Dubai and the Institute of Corporate Governance (Hawkamah), a subsidiary of the Dubai International Financial Centre (DIFC), have signed an agreement to co-operate in the setting up of an 'Islamic Management and Governance Centre' in Dubai, in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to transform Dubai into the capital of Islamic economy.
The agreement, signed between Ali Ibrahim, Deputy Director General of DED, and Dr Ashraf Gamal El Din, CEO of Hawkamah, is part of public sector collaboration for developing the economic and trade aspects of Islamic governance across all levels in Dubai.
"The Department of Economic Development seeks to provide the best practices in the field of Islamic management and governance in co-operation with specialised agencies such as Hawkamah. Through such partnerships, we aim to bring in standards and practices necessary to support the establishment of a Centre dedicated to Islamic management and governance. The Centre will focus on management aspects in organisations including Islamic financial institutions but will also work to ensure its implementation in alignment with best global governance practices," said Ali Ibrahim.
"The Hawkamah will support Department of Economic Development in the design and implementation of Islamic governance standards to enact corporate governance principles set forth in the Sharia laws. We will work together towards establishment of the Islamic Management and Governance Centre as a novel infrastructure institution of Islamic economy not only at the local economic level but also at the global level," added Ibrahim.
"It is important to apply good corporate governance for the success of companies involved in Islamic Economy activities and to enable them lay solid foundations of Islamic Economy. This will strongly support Dubai's plans to become a global hub for Islamic Economy," said Dr. Ashraf Gamal El Din.
Dr. Ashraf added: "Corporate governance makes companies balance the needs and expectations of its various stakeholders. Corporate Governance is also essential in fighting corruption and unethical behaviour in companies operating within the Islamic Economy sphere where key challenge is to create the relevant rules for the activities and culture of those companies. This is where having an 'Islamic Management and Governance Centre is important."
Abdulla Mohammad Al Awar, CEO of Dubai Islamic Economy Development Centre (DIEDC), said: "This agreement constitutes an advanced step towards strengthening the Islamic economy ecosystem through applying the principles of transparency, equity and best practices in order to achieve a balance between economic goals and social objectives. There is no doubt that Dubai is moving forward in its vision to grow as the capital of Islamic economy as we witness the commitment and collaborative efforts of various stakeholders to ensure the judicious use of resources for safeguarding the economy from risks and crises."
As a non-profit organisation, the Islamic Management and Governance Centre will develop implementation and monitoring mechanisms to measure the impact of standards on firms' performance. In addition, the Centre will provide training and education on governance and management matters to wider stakeholder community and promote sharing of best practices.
DED has developed the Islamic values based standards for dealing with governance and management issues following wide consultations with various government and private sector entities from different industries.
