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HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUS DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUS

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HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUS Empty HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUS

Post by claud39 Wed Feb 24, 2021 10:47 am

HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUSINESSES IN THE ARAB COUNTRIES
 2021-02-23




HIS EXCELLENCY DR. ABDUL RAHMAN BIN ABDULLAH AL HAMIDI, DIRECTOR GENERAL, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE ARAB MONETARY FUND, DELIVERS A SPEECH ON THE OCCASION OF THE INAUGURATION OF A HIGH-LEVEL "REMOTE" WORKSHOP ON THE GOVERNANCE OF FAMILY BUS Logo-ar




Emphasizing the pivotal role of family businesses in economic and social development, which represent about 70 percent of total companies in the world
Advocating for the development of appropriate policies to strengthen the governance of family businesses in the context of awareness of the challenges these companies face
Responsibilities of supervisory authorities in promoting good governance of family businesses
The need for reliable statistics on the activities and businesses of family businesses
The role of indicative charters in enhancing the values ​​of family companies and developing their business
The importance of a shared family vision towards the strategic goals of the company
Emphasizing the importance of continuing consultation and dialogue between the various parties to improve family business governance and strengthen its role


 
The Arab Monetary Fund organized a high-level "remote" workshop on the governance of family businesses in the Arab countries, on Monday, February 22, 2021, in the presence of high-level officials from Arab countries, representing the ministries of finance and trade, central banks, financial market authorities, bank unions and federations Chambers of Industry and Commerce, in addition to a group of commercial banks, consulting companies and family companies in the Arab countries. The workshop was also attended by experts from regional and international institutions from the Organization for Economic Cooperation and Development, the International Finance Corporation, the International Family Business Network and the Gulf Family Business Council.

On this occasion, His Excellency Dr. Abdulrahman bin Abdullah Al Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, delivered a speech in which he confirmed the Arab Monetary Fund’s keenness to provide a platform for dialogue and consultation between high-level officials in the public and private sectors to exchange experiences and opinions on ways to support the family business sector and challenges. Facing it, in light of the important role that family businesses play in economic and social development, thus enhancing financial stability.

His Excellency affirmed that the workshop comes within the framework of the pivotal and important role of family businesses in economic development and their contribution to achieving comprehensive and sustainable growth and providing job opportunities, as they represent about 70 percent of the total companies in the world, which calls for the supervisory authorities to study the reality of this sector to determine its size And its nature and the risks and challenges associated with it, to form a database of statistics and data to understand the main trends and challenges facing family businesses, especially in light of the increasing importance of their role in supporting productive economic projects, thus enhancing financial stability, which is a major goal of central banks.

His Excellency indicated that the partnership between the public and private sectors is the key to the prosperity of economies in countries, and therefore coordinating efforts and strengthening consultations between supervisory authorities on the one hand, and family companies on the other hand, would support the family business sector to play the role hoped for, in a way that maintains its continuity. . Where the importance of the relevant supervisory authorities issuing regulations and regulations is evident as a guiding charter for family businesses at the level of each country. Includes as a minimum:

His Excellency expressed his thanks for the presence of a group of high-level specialized expertise, whether from international and regional financial institutions or from various supervisory authorities, as well as many officials and decision-makers in banks and companies, in order to help reach a comprehensive vision regarding ways to develop and strengthen the governance of the family business sector from In order to achieve financial stability, it contributes efficiently and effectively to achieving comprehensive and sustainable economic development.

In conclusion, His Excellency renewed his thanks and gratitude to the United Arab Emirates, the headquarters country of the Arab Monetary Fund, for the great facilities it provides that contribute to the fund’s success in achieving the goals entrusted to it.

 
The following is the full text of the speech:
 
Your Excellencies,


Ladies and Gentlemen,
May God bless your good morning / evening wherever you are,
I am pleased to welcome you, at the beginning of the first meeting on " Governance of Family Businesses in the Arab Countries " , organized by the Arab Monetary Fund.


Allow me at the outset to express my sincere thanks and appreciation to the honorable attendance at this meeting, in which a group of experts from our Arab countries are participating, including ministries, central banks, money market authorities, commercial banks, family companies, consulting firms, universities, bank unions and federations of chambers of industry and commerce. I would also like to thank the regional and international financial institutions for their kind participation with us today.

I also extend my special thanks to the experts and speakers, who were keen to participate today, to provide their views on ways to enhance the strength of the family business sector and preserve its role in sustainable development, in accordance with international best practices.

Your Excellencies,


Ladies and Gentlemen,


Your attendance at this meeting reflects the interest and desire to enhance the good governance of family businesses, in order to enable them to play their role in supporting economic projects, and keen to exchange views and ideas about the risks facing this vital sector. Whereas, preserving the strength and development of the family business sector reflects positively on enhancing financial stability, which is a major goal of economic policies in the Arab countries. A recent study issued by the Arab Monetary Fund (2020) showed that there is no clear legal definition of family businesses in a number of Arab countries, as there is no classification or definition for family companies, as most Arab countries classify companies according to their size into small, medium and large companies, without Taking into consideration the nature and privacy of the family business. This prompted the Arab Monetary Fund to issue " Principles for Dealing with Family Companies of Systemic Importance"In September of 2020, within the framework of the Fund's keenness to provide advice and technical assistance to its member states, given the increasing importance of the role of family businesses in supporting economic projects, thus enhancing financial stability and financial inclusion in the Arab countries. The principles included a set of recommendations related to strengthening family business governance and reducing systemic risks that may arise from the family business sector, as they emphasized, beginning with the importance of adopting a unified definition of family businesses at the state level, in coordination and consultation between the relevant official bodies and institutions. In addition to adopting an appropriate methodology to determine family businesses of systemic importance, based on several factors such as: the size of the company's assets, capital, activity and annual sales, and the number of workers.

In the same context, the principles emphasized the importance of the regulatory authorities issuing governance instructions for family businesses, obligating these companies to prepare a governance guide that takes into account the supervisory instructions as a minimum. The guide also includes the company's view of the concept of governance, its strategy and principles of strengthening it. The principles indicated the important role that central banks play in limiting the systemic risks that may arise from family businesses, by setting appropriate instructions, controls and limits for exposures to relevant bank clients, and setting special controls for family companies before granting credit, taking into account the nature of their work and their specificity, including For example, having a second row of management, applying corporate governance requirements, and the debt level of the existing company.

Your Excellencies,


Ladies and Gentlemen,


Family companies play a pivotal and vital role in economic development and contribute to achieving comprehensive and sustainable growth and providing job opportunities, as they represent about 70 percent of the total companies in the world, which calls for the supervisory authorities to study the reality of this sector to determine its size and nature and the risks and challenges associated with it, To create a database to understand the main trends and challenges facing family businesses, especially in light of the increasing importance of their role in supporting productive economic projects, thus enhancing financial stability, which is a major goal of central banks.

According to the IFC Family Business Guide, a family business is defined as the company in which the majority of votes are in the hands of the controlling family, including founders who intend to transfer the company to the next generation. Despite this, it is difficult to find a unified definition of the concept of family businesses, and therefore it is difficult to describe and define an accurate or unified definition.

Reports issued by the competent authorities indicated that the most prominent challenge facing family businesses is the governance aspect. For example, a report by a consulting firm indicated that the most important challenges facing family businesses are internal and not external, as changing family relationships and succession of leaders are among the most important challenges that accompany the company's activity in the market. The same report indicated that family companies follow a variety of methods of governance, such as the use of forums, family gatherings, and family councils. The report also emphasized that one of the most important priorities of family businesses is to build the next generation of leaders to maintain business continuity and family identity. As preparing the next generation and helping them understand work, they are qualified to take leadership, move between generations and reduce unexpected challenges and disagreements.

With regard to replacement plans for family companies in the world, a survey of a consulting firm indicated that 30% of family firms prefer to transfer the ownership and management of the company to family members, while 15% prefer transferring management only, and 20% transfer ownership without management. On the other hand, despite the tendency of family businesses to maintain business within the family, only 26 percent of these companies have formal succession plans for the CEO position, for example, while the majority do not have formal or informal replacement plans. To occupy key positions within the company.

Your Excellencies,

Ladies and Gentlemen,


It must be emphasized that the partnership between the public and private sectors is the key to the prosperity of economies in countries, and therefore coordinating efforts and strengthening consultations between supervisory authorities on the one hand, and family companies on the other hand, would support the family business sector to play the desired role, including Maintains its continuity. One of the matters that should be taken into consideration is that the relevant supervisory authorities issue regulations and regulations as a guiding charter for family businesses at the level of each country. Include as a minimum:

Your Excellencies,


Ladies and Gentlemen,


This meeting is an opportunity to discuss many issues related to strengthening family business governance, and the role of regulatory authorities' policies in achieving a balance between enhancing the robustness of the sector and reducing the systemic risks that may arise from it. This highlights the importance of reviewing and strengthening the legislative system to support this sector.

There is no doubt that the presence of this number of high-level specialized expertise, whether from international and regional financial institutions or from various supervisory authorities, along with many officials and decision-makers in banks and companies, will contribute to reaching a comprehensive vision regarding ways to develop and strengthen the governance of the family business sector in order to Achieving financial stability that contributes efficiently and effectively to achieving economic development.

Finally, and at the end of my speech, I reiterate my thanks and gratitude to the United Arab Emirates, the headquarters country of the Arab Monetary Fund, for the great facilities it provides that contribute to the success of the fund towards achieving the goals assigned to it.

May Allah's peace, mercy and blessings be upon you.




https://www.amf.org.ae/ar/content/%D9%85%D8%B9%D8%A7%D9%84%D9%8A-%D8%A7%D9%84%D8%AF%D9%83%D8%AA%D9%88%D8%B1-%D8%B9%D8%A8%D8%AF%D8%A7%D9%84%D8%B1%D8%AD%D9%85%D9%86-%D8%A8%D9%86-%D8%B9%D8%A8%D8%AF%D8%A7%D9%84%D9%84%D9%87-%D8%A7%D9%84%D8%AD%D9%85%D9%8A%D8%AF%D9%8A-%D8%A7%D9%84%D9%85%D8%AF%D9%8A%D8%B1-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%B1%D8%A6%D9%8A%D8%B3-%D9%85%D8%AC%D9%84%D8%B3-%D8%A5%D8%AF%D8%A7%D8%B1%D8%A9-%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-47
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