Trust is the most valuable asset in markets, says deputy commerce minister
Abdulaziz Al-Duhaim highlighted at a governance conference that trust lowers business costs and governance provides the foundation for building it.
Key Takeaways
AIDeputy Minister of Commerce Abdulaziz Al-Duhaim said that trust is the most valuable asset in any market.
Speaking at the Conference on Legal Aspects of Governance in the Kingdom, Al-Duhaim added that as trust increases, the costs of disputes, financing, partnerships, and contracts decrease. Conversely, when trust declines, the cost of every transaction rises, as each party pays to hedge against the other.
He continued that governance is not limited to oversight, but rather forms the structure upon which trust is built. It contributes to clarifying responsibilities, protecting rights, and improving decision quality, while the regulatory framework enhances the protection of partners, shareholders, and stakeholders' rights.
Al-Duhaim went on to say that good governance ensures "clarity of responsibility, so that everyone in an organization knows what they are authorized to decide and what they are accountable for; protection of the rights of stakeholders, including partners, shareholders, employees, suppliers, and contractors; and improvement in decision quality."
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