Rotana Corporate Sustainability Report 2012

Our corporate governance is rooted in our legacy of maintaining a top-quality guest-oriented management system that fulfills our responsibilities and creates relationships of trust with our stakeholders. These are built upon strong foundations of transparency, disclosure, fairness, monitoring and review with a focus on dialogue between management and colleagues and the society at large. As part of its oversight stewardship, the board monitors how management operates the company and considers the risk and vulnerabilities the company faces when approving strategies. The board considers also appropriate stakeholder’s recommendations and proposals and takes any steps needed to further improve the company’s standards, controls and accountabilities. The board members meet at least twice annually. Board Composition Our Board of Directors comprises six Executive and Non-Executive members. All our board members are non independent. The members possess experience in fields as varied as finance, economy, business administration, and hoteliering to social service and engineering. The skill and knowledge of the Board members has proved to be of immense value. For the time being, there are no official mechanisms for employees to provide recommendations to the Board directly. Transparency and Control Rotana’s finance systems are based on a very simple principle: that real financial management can only be achieved through transparency and control. These two accounting principles inform everything we do and ensure an up-to- the-minute understanding of where our hotels stands financially – as well as a clear understanding of how improved cost efficiencies will affect the future. Rotana’s systems provide feedback to property owners on every aspect of their property, be it occupancy trends, employee productivity or cost efficiency. Financial planning is underpinned by practical policies, state-of-the-art information systems and a two-tier audit process that ensures management and operations performance is continuously reviewed and evaluated. Our operations manuals and authorisation systems are geared towards maintaining control over every operating cost. Combined, these tools give owners and managers the means to maximise sales growth, ensure profitability, and deliver strictly controlled expenditure. Board Operation Key Issues: • Board Operation • Organisation • Code of Business Conduct and Ethics Non-Executive Directors comprise 70% of the Board members, with the Chairman being a Non- Executive Member Corporate Governance is a multifaceted system that directs the business conduct. It includes the rights and duties of stakeholders, Board of Directors and management alike. Rotana’s understanding of corporate governance delves beyond financial performance, to encompass guest and colleague’s satisfaction, commitment to quality and brand standards, accountability, transparency and business ethics.