Abraaj Capital, the private equity and alternative asset management group in the Middle East, North Africa and South Asia (MENASA), announced its entry into a memorandum of engagement (MoE) with the Pearl Initiative.

In signing the MoE, and joining the Pearl Initiative as a founding partner, Abraaj Capital re-states its commitment to the principles of transparency, accountability and corporate social responsibility.

Abraaj Capital, which recently issued its first integrated sustainability report, believes that by embedding sustainability management into its business and adopting global best practice environmental, social and governance principles (ESG), it is possible to enhance long-term value creation for investors, shareholders and wider stakeholders. 

The Pearl Initiative, which has been developed in cooperation with the United Nations Office for Partnerships, is committed to improving corporate values in the region through a focus on good governance, ethical business and the creation of a more open and transparent business environment. 

By emphasizing dialogue between the public and private sector, encouraging broad stakeholder engagement, and promoting best in class corporate governance, the Pearl Initiative is making a significant contribution towards enhancing the economic and social landscape of the region. 

Commenting on the MoE, Arif Naqvi, Founder and Group Chief Executive Officer of Abraaj Capital and a member of the Board of Governors of the Pearl Initiative, said, "Our strategic relationship with the Pearl Initiative is a demonstration of Abraaj Capital's commitment to creating value through the adoption of a broad and diverse stakeholder engagement approach. By joining the Pearl Initiative, Abraaj Capital has highlighted its practice of, and commitment to, the principles of good corporate governance, sustainability and ethical business. We believe that by joining forces with the Pearl Initiative, we can encourage corporates in the region to adopt a wider stakeholder management approach that drives both shareholder and societal value and returns."

Badr Jafar, co-initiator of the Pearl Initiative, and President of Crescent Petroleum, said upon welcoming Abraaj Capital to the Pearl Initiative, "Abraaj Capital represents a new generation of private equity firms that are committed to delivering superior returns to their shareholders whilst also making a sustained and positive contribution to the markets and communities in which they operate. Abraaj Capital is committed to corporate social responsibility and will be able to spread the message, lead by example, and demonstrate actions over words - making the Pearl Initiative's principles more widespread within the MENASA region."

The Pearl Initiative - which had its soft launch at the United Nations headquarters in September 2010 and its Inaugural Board Meeting at the American University of Sharjah (AUS) on April 19th 2011 - is currently preparing for a launch and engagement forum in the Gulf later this year and is expanding its team of partners and collaborators.