Wednesday, May 04, 2011

Landmark deal signed between RERA, DREI and Hawkamah

Hawkamah Institute for Corporate Governance, together with RERA (Real estate regulatory agency) and DREI (Dubai Real Estate Institute), have signed the first of its kind landmark deal, aimed at improving corporate governance within the real estate industry in the UAE.

The MoU reflects Hawkamah, DREI and RERA’s commitment towards improving the corporate governance regulatory framework and implementation of the same in real estate sector.

Hawkamah, together with RERA is working towards developing a Code of Corporate Governance for the real estate sector in Dubai, and will soon undertake a series of training with DREI about Corporate Governance for Directors, Senior Management and officers.

The Executive Director of Hawkamah, Dr. Nasser Saidi, mentioned that improving and boosting corporate governance practices is one of the pre-requisites to maintain investors and protect investors, home owners, markets, tenants and their associations and keep the other stakeholders’ confidence in the real estate sector.

According to Dr. Saidi, the real estate companies need to get more transparent with better reporting practices, as real estate is now a global business and therefore, corporate governance plays a vital role for international and regional investors planning to invest in real estate.

The Chief Executive Officer of RERA, Eng. Marwan Bin Ghalita, mentioned that the real estate market should be brought on par to the best international standards. With the implementation of governance practices, the Dubai real estate market will be the first market in the region to adopt such a vital initiative. This is aimed at making the market more transparent and investment friendly.

RERA will continue to develop the regulatory framework for Dubai property market, so as to keep it at par with future development. The governance practices will be applied at the corporate levels as well, to improve the confidence in the market.

The Managing Director of DREI, Eng. Mahmoud Al Burai, mentioned that professional development, together with corporate governance are required in a mature real estate market, and DREI aims to put together infrastructure that is indispensable in the post downturn era, to implement a corporate governance that is congruent with Dubai real estate environment, and also adheres to globally established practices.

The deal actually provides a framework for DREI and Hawkamah to work on improving the corporate governance practices within the real estate industry.

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