UAE’s economy is passing through an economic slowdown. This is the result of many factors, but one of them is the lack of confidence in the market. Experts say that the unique way to help UAE’s economy to escape this slowdown is by increasing confidence. But there is a problem: confidence has been affected by the criminalization of bounced cheques and the inexistence of a proper bankruptcy law. These two problems are quite damaging to the UAE’s market because business owners prefer to escape and avoid facing prison time rather than reaching a settlement with creditors.
But there are other factors which affect the confidence in the market. We can name corporate scandals for instance, which damages the market even further. And this is why Auditors in UAE are necessary because they are the only who are capable of verifying financial records of a company and detect if they were performing deceptive financial practices. This is the role of Auditors and Audit Firms in Dubai, which is going to be the main topic of our discussion.
Auditors to the Rescue of Confidence
UAE’s market is quite attractive for foreign companies, and we can verify it by checking that it’s amongst the most attractive retail markets in the world and the best in the Middle East. But in order to attract investors, it’s crucial to have a transparent market that transmits confidence. That’s why Companies must undergo External Audits at least once in a year. These Audits must be performed by Independent Auditors, in order to issue Audit Reports that are transparent and unbiased.
It’s also important to note that all companies regulated by the Abu Dhabi Accountability Authority (ADAA) must rotate their Auditors every four years. This is an extra measure used for keeping more transparency.
The role of Auditors is highly important. Because thanks to unbiased External Audits, the UAE’s market remains one of the hottest real estate markets in the world. Since 2013 Dubai has been considered a profitable and transparent real estate market, and partially this is thanks to professional Audits performed by Independent Audit Firms in Dubai.
In today’s world, not everyone can be registered as an Auditor. An auditing law released in March 2015 rise up the standards for registered Auditors. This new law is aimed at increasing confidence in the UAE market, which would consequently contribute to the economic growth of the country.
Before such law, there were no strict measures on who can act as an Auditor. Fortunately, things have gone onto a better route, which will increase confidence in the market due to the higher standards set for professionals wanting to become Auditors.
Salem El Esaye, the executive manager of the UAE Accountants and Auditors Association, was who pointed out that before this law it was possible for almost every individual to become an Auditor, something that affected the transparent nature of Audit. And he remarked how important it is to have a qualified Auditing community, which is a key element to contribute to UAE’s economic growth.
The conclusion is, financial auditors, play a crucial role in the confidence of the market. It also offers other benefits such as a proper overview of the Company’s management for business owners. UAE’s market needs to attract more investors, and so far now with the new Auditing law created in 2015 which ensures better Auditing practices and professionals, the confidence in our market will increase without doubts.