31 Aug 2023

SCA & Majra unite to promote CSR practices in UAE

The UAE Securities and Commodities Authority (SCA) has partnered with the National CSR Fund (Majra) to achieve corporate social responsibility, promote the UAE’s international position in this field, and direct the contributions of listed joint stock companies to social development projects.

The partnership aims to help sustain the national economy and contribute to achieving the UAE’s sustainable development goals as part of the wise leadership’s declaration of 2023 as the “Year of Sustainability”.

The partnership was launched by Mr. Abdulla bin Touq Al Marri, Minister of Economy and Chairman of the Board of Trustees of the National CSR Fund, and Mr. Mohammed Ali Al Shorafa Al Hammadi, Chairman of the SCA.

The ceremony took place at the ministry in the presence of Dr. Maryam Butti Al Suwaidi, CEO of the SCA, Ms. Nuha Al Harmoudi, Director of the National CSR Fund, and officials from both sides.

“By collaborating with the SCA, we will be implementing the first phase of the mandatory corporate social responsibility (CSR) disclosure policy, which aims to promote transparency and establish good governance, specify the mechanisms through which corporations and organizations can disclose their contributions to achieve sustainable impact and enhance the UAE’s competitiveness and business sustainability.

“We will improve the community’s ability to address challenges, develop an integrated regulatory framework to manage, improve, and measure social initiatives with sustainable impact, and document social responsibility and sustainability practices and measure their impact on the country’s sustainability and competitiveness,” Mr. Al Marri said.

Mr. Al Hammadi said that “The partnership is part of the efforts of the two sides to promote socially responsible practices among listed companies, enhance cooperation between the private and public sectors, incentivize listed joint stock companies to incorporate social responsibility standards into their economic activities, and help direct corporate contributions to development projects in line with the UAE’s national priorities and ESG indicators, thereby pushing the country’s economic development to unprecedented heights and enhancing its global competitiveness.”

Under the partnership, the two parties will enhance CSR awareness, promote corporate disclosure practices, and encourage joint stock companies to contribute to social projects approved by the National CSR Fund. The parties will also share information, expertise, and studies, organize joint training and educational programs in capital markets, the financial services industry, and financial inclusion, and use the e-portals and social media platforms of each other for awareness-raising purposes.

The partnership gives the SCA the priority to receive a list of the projects approved by the National CSR Fund to have it optionally linked to listed companies for financing purposes. Under this partnership, the SCA implemented the first stage of the mandatory CSR disclosure policy across selected companies, which should provide the SCA and the National CSR Fund with information related to their practices.