RIYADH: Saudi Energy Minister Khalid Al-Falih highlighted “good governance” as a competitive necessity and a benchmark of progress for big or small companies on Wednesday.
Al-Falih was speaking at the Governance in Focus forum co-hosted by Saudi Aramco and the Pearl Initiative at the King Abdullah Petroleum Studies and Research Center.
The Pearl Initiative was formed in 2010 by prominent business leaders from across the Gulf region to create a non-profit vehicle for the private sector to take a lead in adopting higher standards in corporate governance, accountability and transparency.
Addressing a packed audience of business leaders, executives, officials and experts, Al-Falih said the forum was an appropriate event to help achieve good governance in the corporate sector, especially the private sector which is being encouraged in line with Vision 2030 to help diversify the economy.
He added that Vision 2030 put great emphasis on encouraging small and medium enterprises as they play a major role in emerging economies and will help contribute to the national transformation program.
The minister pointed out that integrating corporate governance into the strategy has become a competitive necessity as it presents opportunities to manage risks and add value, and that greater transparency with scrutiny and disclosure were key attributes of good corporate governance.
Amin Nasser, president and CEO of Saudi Aramco, said: “In our efforts to achieve Vision 2030 and align ourselves with its aspirations, the Kingdom’s corporations and entities, regardless of size, now have the opportunity to apply or redefine its set of governance at the highest standards, which is vital for the economic transformation currently under way in the Kingdom.”
Badr Jafar, founder of the Pearl Initiative, said the forum was an initiative with Aramco to shine a light on the various important roles that the government, business and philanthropic sectors need to play in creating corporate governance frameworks that support competitiveness, inclusiveness and sustainability in the region.