UAE Corporate Governance Code

What is the UAE Corporate Governance Code?

The UAE Corporate Governance Code is a framework established by the Securities and Commodities Authority (SCA) that sets governance standards for public joint-stock companies listed in the UAE. It aims to enhance board effectiveness, accountability, shareholder protection, and transparency while aligning the UAE capital market with international best practices.

The most recent updates were issued in 2020, reinforcing stronger governance, risk management, and sustainability practices to support the UAE’s long-term economic vision.

Why the UAE Corporate Governance Code Matters

  • Protects Shareholders – Ensures fair treatment and stronger investor rights.

  • Strengthens Boards – Defines the roles and responsibilities of directors and committees.

  • Promotes Transparency – Enhances disclosure of financial and non-financial information.

  • Improves Risk Oversight – Requires internal controls, compliance systems, and audit functions.

  • Supports Sustainability – Encourages ethical and socially responsible governance.

Key Provisions of the UAE Corporate Governance Code

  1. Board of Directors

    • Independent and non-executive director requirements

    • Separation of chairman and CEO roles

    • Establishment of audit, nomination, and remuneration committees

  2. Shareholder Rights

    • Equal voting and participation rights

    • Protection against insider trading and conflicts of interest

    • Transparent dividend policies

  3. Disclosure & Transparency

    • Periodic financial reporting

    • Disclosure of related-party transactions

    • Corporate governance reports to the SCA

  4. Risk & Control Framework

    • Mandatory internal audit functions

    • Oversight of risk management and compliance systems

    • Regular review of governance practices by the board

Example in Practice

A UAE-listed company must appoint an independent audit committee to oversee financial reporting and internal controls. The committee reports directly to the board and SCA, ensuring accountability and investor protection.

How VComply Can Help

VComply helps UAE companies comply with the Corporate Governance Code by:

  • Automating board governance workflows (meeting agendas, minutes, voting)

  • Tracking compliance obligations with SCA regulations

  • Streamlining audit and risk management processes

  • Supporting policy lifecycle management for governance frameworks

  • Providing real-time compliance dashboards for boards and shareholders

With VComply, companies can strengthen governance practices, reduce regulatory risk, and build lasting investor confidence.