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As the Dubai World saga reaches a painful resolution, the UAE has little choice but to recognise and act upon its previous shortcomings. As the UK’s new prime minister David Cameron ushers in “an age of austerity”, the UAE is ushering in a parallel era that’s grounded in similar excesses: an “age of regulation”.

More than anything, the Dubai World, Algosaibi and Saad sagas have highlighted a need for truthful and transparent assessment of finances. Sheikh Ahmed, chairman of the Supreme Fiscal Committee and Emirates Group, kicked off last month’s MENASA finance event announcing “urgent federal steps to address the gaps in the UAE’s legal and regulatory infrastructure” and a focus on “corporate governance”.

Post-apocalypse, the credit tap will not drip quite as bountifully as before. Companies will have to fight harder to get loans. In times to come, a coveted family name, or even a business plan that’s etched on gold, will not be enough to secure limitless funding.

According to Fabio Scacciavillani,  DIFC boss of statistics and .Commerce columnist: “Each project will be evaluated more carefully, the planks of its business plan and the expected cash flow will become the overriding factors on which lending decisions will be taken. The transition will not be easy for all, but it will be an essential step in the creation of an economy where progress is not measured only in terms of physical infrastructure, but more critically, in terms of institutional capital.”

The crisis has taught the UAE that true success lies in taking the time to quantify, streamline and share company information within the company, with partners and shareholders.

It will take time to turn the national ship, of course, but talk must now turn to regulatory action if companies want to secure access to tightly-strapped investors. What was once a noble notion is now a matter of survival.

Enjoy the issue

Alicia Buller
Editor