Arabtec has been called the "Darling of the Dubai Financial Market". Our shares are heavily traded on a daily basis representing anything from 5% to 40% of the daily dealing volume and value. Arabtec is a well managed company, like others in the region, but we believe our attractiveness as a publically listed company is mainly due to our openness, transparency, and frequent communication approach, an important component of our governance culture.

Our success, comes from our passion for creating value - value for customers, investors, employees, suppliers and other stakeholders whenever and wherever we do business. Underlying our success is an approach to corporate governance that extends beyond simple compliance with regulatory requirements. We strongly believe that corporate governance must provide a framework for establishing a culture of business integrity, accountability, and responsible business practices that cares for the business, the employees, the society and our environment, and is clearly transparent to all stakeholders.

Strong corporate governance at Arabtec Holding starts with a Board of Directors that is mainly independent (7 out of 9 members are independent, they are engaged and committed (meet at least 6 times a year), and are very effective. Our Board establishes, maintains, and monitors standards and policies for ethics, business practices, and compliance that span the company and our subsidiaries, safeguarding our investor’s interest, strengthening investor confidence and creating long-term stakeholder value.

Arabtec Holding is a Publicly Listed Company and therefore we must be publicly open and transparent. It has developed a model of governance that aligns the values of all the corporate participants; these include:

Rights and equitable treatment of shareholders: Companies must respect the rights of shareholders and help shareholders to exercise those rights. Companies should effectively communicate information that is understandable and accessible and encourage shareholders to participate in general meetings.

Interests of other stakeholders: Companies should recognize that they have legal and other obligations to all legitimate stakeholders and accordingly have to be transparent in its dealings with them.

Roles and responsibilities of the board: Companies should recognize that the Board of Directors needs a range of skills and understanding to be able to deal with various business issues and has the ability to review and challenge management performance. It needs to be of sufficient size. It must have an appropriate level of commitment to fulfill its responsibilities and duties and meet regularly.

Arabtec Holding goes beyond the recommendations of the Regulators regarding independence of the Board members and have more than the recommended number of independent directors, 7 out of 9. We publish our notices of Board Meetings in advance and we publish the summary minutes immediately after Board Meetings.

Integrity and ethical behavior: Ethical and responsible decision making is not only important for public relations, but it is also a necessary element in risk management and avoiding lawsuits or penalties. In our case, Arabtec Holding has developed a code of conduct for their directors and executives on the Holding level and on the subsidiary level that promotes ethical and responsible decision making.  We have established the position of Compliance Officer who will ensure that the company abides by its Governance Guidelines and Regulatory Requirements.

Disclosure and transparency: Companies should implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the company’s activities should be timely and balanced to ensure that all investors have access to clear, factual information. In the case of Arabtec Holding, we publish our full quarterly and annual accounts as soon as they are reviewed by the auditors and the Audit committee and approved and signed by the Board of Directors.

Companies should spend a lot of time communicating with stakeholders in the good times and the bad times. In bad times specifically, the only way to address uncertainty is to communicate. One legacy of the current downturn will be a reinforced belief in the value of frequent, transparent communication externally; and internally with our employees, and not just the CEO’s or CFO’s direct staff.

We cannot overemphasize the power of openness at all levels.

Externally:

The External Auditors

• Our accounts are reviewed quarterly and audited annually
• The External Auditors meet quarterly with the Audit Committee Members who are independent Board Members and external independent financial experts

The Regulators DFM (Dubai Financial Market) and SCA (Securities and Commodities Authority)

• We send Quarterly and Annual accounts as soon as they are audited
• We send all Press Releases before communicating with the media so as to publish on their website
• We have periodic meetings to develop better communication channels with our stakeholders

The Investors

• Arabtec Holding has an Investor's Relations Unit whose members speak various languages and deal with all enquires promptly and courteously
• Investors have access to our Quarterly and Annual accounts as soon as they are reviewed by the Auditors and approved by the Board of Directors
• Investors have direct access to the CEO and the CFO, and many investors have their personal mobile numbers
• Investors are individually invited to attend the AGM or EGM as requested by law and are given ample notice, in the press and in writing with a follow up procedure by e-mail, phone and fax

The Financial Advisors

• Have access to our Quarterly and Annual accounts 
• Have direct access to the CFO
• Are invited to quarterly conference calls that suit their time zones as soon as the results are published
• They receive copies of all Press Releases immediately after the DFM and SCA are informed
• They attend periodic Meetings with the CEO and the CFO
• They receive a Quarterly Backlog Report that shows work completed, work cancelled, and new work acquired per region and who the clients are
• Their enquiries are dealt with on an individual basis promptly

The Media

• They have access to our quarterly and annual accounts
• They are forwarded copies of Press Releases
• The CEO and the CFO give interviews frequently and answer questions
• They are invited to special press conferences when major announcements are made like in the case of starting the operation in Saudi Arabia
• Their enquiries are dealt with on an individual basis promptly

Internally:

We communicate regularly with our employees. Openness builds respect, trust, and solidarity, all of which in turn help our employees stay focused on the task of running the business at a time when financial rewards might be limited and the future uncertain.

"Transparency Clearly Adds Value."