How has the Middle East been developing, and what’s the involvement of the Middle East Investor Relations Association (Meira)?
What we want to achieve is a standardized approach across the markets for engagement with investors: that thinking is beginning to take shape at a regulatory and Ministry of Economy level. In the Gulf Cooperation Council region, the correlation between that agenda and the contribution a well-structured and effective capital markets business adds is now front and center. And we are part of that conversation.
What is the situation with the capital markets in the region?
We probably have too many capital market authorities, certainly in the UAE, where there are three or four. There is room for refinement that would be of benefit to the markets as a whole. From an international investor perspective, there is a sense things are moving in the right direction, though there is still a way to go. But the UAE and Qatar acquiring MSCI Emerging Market status is a massive step in the right direction. It acts as a catalyst for all the different elements of policy making and legal structure that would ultimately protect international investors’ interests.
Can you expand more on Meira’s role?
We are here for the IROs. It is a role that has progressed from a function to a profession, and we’re here to support the next generation in establishing the role of IR and the career path it offers, which will involve helping the exchanges – for example, with graduate training programs. We also have very good partnerships with several corporates and multinationals that supply funding and a standard reference of support, because they are a benchmark in their own right. Our partnership with the UK’s IR Society has been fantastic, giving us the ability to deliver the internationally accredited standard of IR training. Previously we were knocking on the doors of exchanges and regulators saying, ‘You need to be thinking of this.’ Now they are calling us, which is phenomenal.
How has IR progressed as a profession in the region?
We now have a license issued by the Dubai Chamber of Commerce and Industry for the region, which ensures our counterparts – both in government and the private sector – are confident that while we are a not-for-profit we are not an NGO. That is really important, as it can be misunderstood, so credibility has been key. We need to ensure we are appreciated and understood for being what we are: a professional organization for professionals.
If everything progresses well over the next year or so, I think we can go from a few top corporates doing IR well, to the majority: 50 percent or 60 percent of corporates doing IR well. I would hope
in five to 10 years’ time we would have a very streamlined market operating to the highest standard and a story told about the Middle East in the investor community that is in line with what actually goes on here. At the moment, the story is a little disparate. I would also hope there is a real belief at C-suite and board level in the validity of IR.
What needs to happen for this to occur?
We have the momentum from the top – now we just need the market to follow. Two things need to happen: one is building confidence and the other is encouraging organizations to understand that even if they have majority shareholder ownership they still have minority shareholders that influence the market much more dynamically than corporates often realize. Fundamentally, transparency and building trust are the two challenges: Meira is playing its part in acting as an important conduit in the region.
