Bupa Arabia No. 1 in public disclosure & transparency
Bupa Arabia for Cooperative Insurance ranked No.1 in the “public disclosure and transparency” category of the Corporate Governance Index (CGI) rating for publicly listed companies.
The Corporate Governance Center (CGC) at the College of Business of Alfaisal University issues an annual report which includes the CGI rating based on sound corporate governance principles set by the CMA, the Saudi Arabian Monetary Authority (SAMA) and the Organization for Economic Cooperation and Development (OECD).
The most recent report, the second annual ratings, covering the 2016 fiscal year, ranked Bupa Arabia first under the public disclosure and transparency category.
“Bupa Arabia ensures robust public disclosure and transparency, in both Arabic and English, through a variety of platforms, including its website, annual reports, Tadawul announcements and others,” said Chief Risk Officer of Bupa Arabia Ali F. Hamdan.
“Good governance is essential for publicly listed Saudi companies in the increasingly competitive global market, and public disclosure and transparency is one of the most important principles of corporate governance,” he added.
Public disclosure and transparency are essential elements of a robust corporate governance framework as they provide the base for informed decision-making by shareholders, stakeholders and potential investors in relation to capital allocation, corporate transactions and financial performance monitoring. The importance of transparency has been widely recognized by both academics and market regulators, resulting in numerous rules and regulations being introduced by the Capital Markets Authority (CMA) to ensure timely and reliable disclosure of financial information, creating the standards and procedures for corporate governance of companies listed on the Saudi stock exchange (Tadawul) so as to strengthen their standing in the international market.
Today, the CMA’s initiative to enhance public disclosure and transparency is taking on a new meaning resulting in more comprehensive and proactive disclosures instead of the release of corporate governance details or policies in a “reactive” fashion. The newly adopted concept of transparency putting more responsibility on the listed companies not only allows the truth to be available for the public but also imposes its disclosure to every stakeholder.
Transparency and strong corporate governance are needed in both domestic and international transactions and at all phases of investment. With the CMA’s new rules and regulations, companies have no choice but to push for good, transparent data availability. Rapid transparent data is becoming integral to the establishment of a reduced risk investment environment.
Saudi Arabia plans to uplift corporate governance and transparency practices as it plays a crucial role in reducing investor risk and increasing investment flows, especially after the CMA declared in April that deeper corporate governance reforms are required in line with global governance standards.