02 November 2006 — Dr Habib Al Mulla calls for continuous improvements in investor protection measures
Cairo, Egypt, November 2, 2006: In an important international conference on capital markets in Cairo, Dr. Habib Al Mulla, DFSA Chairman called for all markets 'to strive for continuous improvements in investor protection measures'. The conference was held under the auspices of H.E. Dr. Ahmed Nazif, The Prime Minister of the Arab Republic of Egypt.
In comparing and contrasting the investor protection index results from the World Bank 'Doing Business Survey', Dr Al Mulla analysed the new and international markets like the DIFC with the more traditional and national markets, operating in Egypt and the UAE.
Egypt and the UAE had the same overall Strength of Investor Protection Index of 4.3 which is lower than the OECD index of 6. He explained that the index rating ranges from 0 to 10 with 10 reflecting the optimum index, pointing out that 'the UK and USA carry an 8 and 8.3 Strength of Investor Protection Index respectively. This is well above the OECD index of 6', he added. Dr. Al Mulla challenged his audience to 'cooperate and chase the 10-Index as an end goal in rapidly globalising markets'.
Dr. Al Mulla said: 'In the Globalisation scenario, we must be able to attract investors to transparent, orderly and fair markets — and to protect them; protecting investors is the cornerstone of successful capital markets. The DFSA has modelled its legislation on the UK and USA, using international best practice', he added.
In his presentation Dr. Al Mulla explained that the DFSA can act quickly to ensure both laws and rules remain up-to-date in terms of international best practice, stating: 'the DFSA is constantly striving to maintain up-to-date measures to ensure sound corporate governance, disclosure, transparency and investor protection'.
In concluding, Dr Al Mulla stated: 'Investor Protection, and the goal of the 10-Index, will separate the good markets from the ordinary in the globalisation scenario.
The DFSA is open to cooperation and has entered into a number of Memorandums of Understanding with authorities and standard-setting bodies around the World to further this aim.
We stand committed to investor protection as a primary measure of success in a globalising world; we will continue on route to the 10-Index'.