New Board Effective Report reveals growing pressure on GCC boards to align with global standards

New Board Effective Report reveals growing pressure on GCC boards to align with global standards

The GCC Board Directors Institute (GCC BDI) has released the findings of its seventh Board Effectiveness Report. The new report, which has been produced this year in collaboration with Heidrick & Struggles, surveyed 113 board members from Bahrain, Kuwait, Oman, Saudi Arabia and UAE to identify the latest trends in board effectiveness, any underlying gaps and recommendations to effectively address any shortcomings to make private and public sector companies more competitive. The findings suggest that governance can be improved if boards align with global best practices and focus more on diversity, independence, strategy and risk management, as well as digital transformation.

The findings indicate that family-owned firms and listed company boards need fresh perspectives. They need to bring in highly skilled people in strategy, digital technology, risk management and sustainability. The report also highlights the need to develop effective strategy, with 18 percent of respondents believing boards fail to devote enough time for strategic planning. Diversity, independence and a limited pool of suitable directors are also areas that lag behind other markets.