The 10 Deadly Sins of Boards of Directors in the Middle East

1. Undeclared Conflicts of Interest

In many companies, board members have personal stakes in decisions or contracts — often undisclosed — undermining transparency and decision integrity.

2. Appointments Based on Personal Ties

Board seats are frequently awarded based on family connections or personal loyalty, not merit or experience, limiting independent thinking and professionalism.

3. Lack of Board Independence

Many boards lack truly independent directors, making it difficult to oversee management decisions objectively or challenge leadership when necessary.

4. Non-Transparent Compensation

Executive and board compensation often lacks transparency. Packages are rarely performance-based and are seldom disclosed clearly, even internally.

5. Poor Risk Governance

Risk management is frequently neglected. Compliance, operational risk, and crisis planning are often seen as formalities rather than core board responsibilities.

6. Low Gender Diversity

Despite regional initiatives, female representation on boards remains minimal, limiting inclusiveness and diversity of thought in governance.

7. Irregular Board Meetings

Some boards meet just once or twice a year — often late, unprepared, or via messaging apps — reducing their strategic relevance and oversight capacity.

8. CEO and Chairman: One and the Same

The CEO often also serves as Chairman, blurring the lines of accountability. This concentration of power undermines checks and balances.

9. No Board Performance Evaluation

There is little to no evaluation of board effectiveness or individual director contribution, preventing any structured improvement or accountability.

10. Resistance to Change and Innovation

Board culture in many companies is conservative and static, impeding innovation, agility, and responsiveness to global competitive dynamics.

🧾 Final Thoughts

These ten "sins" illustrate how corporate governance in the Middle East — especially in family-owned, semi-state, or legacy companies — still struggles to align with international best practices.

To stay competitive, regional boards need:

• Greater independence

• More accountability

• Stronger diversity and transparency

• And, most importantly, a shift from ceremonial oversight to real strategic governance

If you’re assessing a potential board position, investment, or joint venture in the region, make sure to evaluate not only the structure, but the power dynamics behind the scenes.