Abu Dhabi's largest real estate firm, Sorouh Real Estate Company, was recently fined Dh100,000 for failing to disclose its first-half results on time. The rare move on the part of the Emirates’ Securities & Commodities Authority (ESCA) comes in the wake of a decision by ESCA to tighten practices on the UAE bourses.
ESCA officials maintain that they have warned companies repeatedly, and that there is no excuse for such delay. This is, however, the first time that market regulators in the UAE have fined a listed company, according to the Arabian Business Weekly.
"It’s definitely a step in the right direction,” Framroze Pochara, CEO of Dubai Gold & Commodities Exchange. Pochara is one of many analysts who have praised the ESCA move for greater professionalism in the market.
“After giving and extending deadlines, if people are not complying then the regulators have to show that they mean business, and ESCA have done that. It’s sending out the right message to all of the companies,” Pochara, added.
Others, like Firas Kaysi, managing director of Fortune Management, Middle East, agreed.
“We need disciplinary action here. People around the world take for granted that there is no regulation in these emerging markets, but this disciplinary action will prove that we are on the right path,” he said.
