Improving Corporate Governance in Saudi Arabia Essay

modify incarnate Governance in Saudi Arabia - Essay ExampleThe key theme in assist brass section is the nature and the extent of accountability of individuals in the bounding orbit, and the tactics they use to suppress principal-agent problem2. Background education Saudi Arabia is the 2nd largest state in the western Asia in relation to the atomic number 18a. It is also the second largest Arab piece after Algeria3. The state has a large economy in reference to other nations in the portion with a GDP of over US$450 billion. It has the capability to maintain its economy, with sustained economy4. Saudis banks are among the leading banks in the GCC banking sector. Their average annual return is between 14% and 31%. This is as a result of a favorable banking environment prevailing in the region. In the recent years, banks analysts in the regions pop the suspense the use of Basel II as it go outing impact the growth and development of the industry. However, the banking sector has different challenges regarding to governance and transparency. This calls for amendments of the structure of banking governance of the banking sector as this get out impact on the growth, and development of the banking industry5. Research question The proposal gives possible solution in Saudis banking system, as it has reluctant corporate banking principles. The sector is deteriorating, as a result of reluctance on the part of the law bodies, leading to neglect of many key principles in banking world. This is evident from the fact that board members are engaging in activities, which compromise their role. Shareholders hold in not been playing their roles because they have been taken up by the management. This calls for change to enhance growth in the sector. Research Objectives The proposal aims at giving suggestions, which will improve corporate banking in Saudi Arabia. This will impact the growth and development of the sector as it will attract investors both locally and in ternationally. The changes will motivate shareholder as they will trust the board members and the management at large. Methodology Corporate governance is an international issue it calls for ideas from all areas of study. The proposal recommends the incorporation of both qualitative and qualitative seek methodologies to enhance the reliability of the results. Detailed enquiry is also significant. Empirical studies will also enhance in designing the most appropriate model of dealing with banking corporate governance in Saudi. Such research includes debates on the same issues in different nations, changes adopted by other nations, as well as, suggestions from bank analysts. Below are some of the areas targets, in the process of changing corporate banking governance. 1. Principles of banking corporate governance It is best(predicate) for the banking sector to adopt the suggestion put forward in the Sarbanes-Oxley Act of 2002-2003 in USA, Cadbury Report of 1992 in UK, and the principl es of Corporate Governance of 1998-2004 (OECD). 2. Corporate governance guidance in reference to Asian Policy truncated These are important guidelines put across to hold in that banking in Asia get to another level. It entails different suggestions which will impact on changing corporate governance in Saudi Arabia. 3. Banks board and management should practise their duty in relation to their fiduciary duty This entails the duty of care. The board together with the management should ensure that they respect that duty. They should be keen on ensuring