A senior investment official recently called on UAE companies to reveal more information to investors and improve corporate governance if they hope to curb sharp swings in local share prices.
Zuheir Tamim Al Jarkass, president of CFA Emirates, the local body of chartered financial analysts (CFA), maintained that since firms in the UAE do not disclose adequate and timely information, investment analysts find it hard to forecast a company's cash flows or evaluate risk, according to Gulf News.
He said that instead, investors in the UAE must rely at times on rumors rather than on educated investment advice, a matter that has led to wild fluctuations in local stock markets.
"Managements need to send out more information to the market that will help analysts value companies properly. There should be a lot of reform on corporate governance and there should be better disclosure requirements," Al Jarkass said.
