Dubai: Efforts to improve governance of state-owned enterprises (SOEs) in the region are posing great challenges for policymakers and enterprises. Policymakers find it difficult to implement new regulations, while enterprises themselves lack the capability to implement reforms.
Wissam Adib, managing consultant at TCO Management Consultants, an advisory firm focused on public sector and semi-government clients in the UAE, said the sudden rush of efforts to implement governance reforms is creating a huge gap between what advocates aspire to and what the current situation is.
"And what that means is we're making good people look bad," he said during the 6th Regional Corporate Governance Conference in Dubai.
"A lot of times, policymakers create policies that are difficult to implement and so when they regulate implementation of the policies, they can be a bit [lenient]. The end result of that is that when SOEs realise that the hammer has not come down yet, the policy becomes retrospective."