Quality of Investor Relations in the Middle East? Press feedback

[colwyn65]

Hi,

I'm a London-based journalist writing a feature article on the quality of Middle East Investor Relations for London-based magazine Investor Relations Magazine. The reason for writing the article is the recent introduction of the Middle East Investor Relations Society.

I was wondering if anyone on Dubaisharetalk had any views about the quality of IR communication generally in the Middle East, particularly around the issues of disclosure, transparency and general corporate governance. I'd be happy to pose questions/feedback to the board members of the ME IRS!

Thanks for your interest here.

Adrian Holliday (aka Colwyn65)

[sharewadi]

Hello colwyn and welcome to the floyd-we-dont-need-no-investor-relations-school stock forums .

Investor relations. Where do I start ? Here's a few topics with previous whines ... er comments.

Middle East Investor Relations - new organisation
UAE investor relations - or lack of, long list of previous issues
UAE corporate governance
ESCA disclosure awards
Emaar DH investor confidence - get knocked back (old article)
UAE insider trading and corporate governance

Many of the topics on company results (see the UAE company results list for links to the topics) will have some comment about the standard of investor relations (from the point of view of a retail investor). Typically, these are issues that bother me (as a retail investor):

• poor quality of disclosures (some are almost illegible - I have a better printer at home, and even the UAE telecommunication company doesn't seem to know how to use email)
  
• lack of directors reports with results
  
• poor directors reports that do not explain unusual changes in financial statements
  
• delayed release of disclosures (especially results released in the afternoon, not available until the following day on market website)
  
• disclosures not complying with ESCA / ADX / DFM guidelines (they should be in Arabic and English)
  
• poor response to investor enquiries - I would estimate the response rate at less than 5% for my email enquiries (although perhaps it's low because it's me ).
  
• companies denying knowledge of news pertinent to sudden share price movements on heavy trading, and then releasing market moving news (company acquisitions, etc)

There's probably more but I need to go back to decrypting some of these obscure disclosures .

I'd be curious to know your connection with the MEIRS and how you get to talk to them ... Anyway, good luck, and thanks for the pedestal .
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[colwyn65]

Sharewadi, thanks very much for your detailed response. I'm going through the links - very illuminating - now. Will let you know how I progress. Thanks for your support.

Adrian

[dxb_kola]

I think Mr. Sharwadi has covered the bases and given a true low-down of the IR situation in the ADX and DFM markets.

Adrian, it's useful to remember that the Middle East financial markets fall under the category of "Frontier Markets". Frontier is an apt description.

But to be fair I don't know how Thai, Singapore and other Emerging Market companies deal or communicate with their investors.

OH, and don't bother emailing people in this region. Email is just for business card and PR purposes.

Sharewadi, I would say the 5% response rate you mention is actually quite good!