Citizens demanded to be allowed to buy shares of cooperative societies, without restricting the geographical location of the association or the emirate where it is located, as was the decision taken by the «Union Cooperative Society», which came in accordance with the new law of associations. They explained that buying shares contributes to increasing the investments of citizens within this sector, as well as bring them advantages as shoppers.
In turn, a retail expert said that opening the door to citizens 'ownership of cooperative societies' shares helps citizens enter into successful business partnerships, helps associations to increase their capital, provide liquidity for expansion and development, increase sales and strengthen their competitive position.
Views of citizens
In detail, the citizen Zayed Al Mansouri called for opening the door for citizens to buy shares of cooperative societies, regardless of the emirate where the association is located.
He explained that he wants to buy the shares of an association located outside the emirate where he lives, but investment in the shares of this association is still limited to citizens of the emirate itself, according to the old law.
He considered that limiting investment to the citizens of the emirate where the association is located has greatly limited the increase of citizens' investment in this important national sector.
For his part, Mohammed Abdullah, called on cooperative societies to open the way for all citizens, to buy their shares regardless of the emirate where they are located, as was the decision taken by the «Union Cooperative» recently.
He said he tried to buy shares in a cooperative known for its good management and good profits to shareholders, but his application was rejected because he was not from the emirate itself.
Abdullah said that opening the door for citizens to buy shares «cooperatives», helps to increase citizen investment in a national entity, and increases its competitiveness, which ultimately hurt the national economy.
He stressed that the decision taken by the «Union Cooperative», to allow the purchase of shares of the Association to all citizens, raised their hopes to follow other «cooperatives».
In the same context, the citizen Hessa Al-Rashed said that many citizens are waiting to open the door for them to invest in cooperative societies without restricting the geographical location of the association, stressing that this benefits citizens in increasing their investments inside their country, increasing their income, as well as benefiting them as shoppers, because they get as owners Shares, on discounts and returns on their purchases.
Multiple benefits
In addition, the retail expert and former CEO of Abu Dhabi Cooperative Society, Ibrahim Al-Bahar, said that to open the door for citizens to own the shares of cooperative societies, several advantages for citizens and associations, and for the economy as a whole.
This helps citizens who have capital to enter into successful business partnerships, and helps associations to increase their capital, provide liquidity for expansion and development, as well as increase the number of their shareholders and achieve a significant increase in sales and profits in the future.
Al-Bahar stressed that the importance of this step increases with the expansion of cooperative societies in the UAE without committing to the geographical location in one emirate, in order to increase competition, maximize the ability to provide food security for consumers, and achieve equality between cooperative societies and other commercial centers that were able thanks to their freedom to expand In the UAE, increase its sales and profits.
He considered that competition will also increase between associations to attract citizens to buy their shares with various incentives, which forces small cooperative societies to merge with large associations, which is in the interest of both sides.
Al-Bahar praised the law of associations prepared by the Ministry of Economy recently, which allowed the Union Cooperative Society and other associations in the state to decide on the ownership of citizens across the country, as well as the expansion of any other emirate, considering the law an important step to support citizens and the national economy as a whole.
Remunerative returns
Mohammed Al Shamsi, former chairman of Ras Al Khaimah Cooperative, said that opening the door for all UAE citizens to buy the shares of cooperative societies in any emirate increases the capital of cooperative societies and encourages shareholders to buy from these associations, thus achieving a rewarding return. For citizens, whether through dividends or citizens' transactions.
He stressed that this contributes to increase the sales of cooperative societies, and strengthen their competitive position, pointing out that the decision to acquire citizens depends on the policy of the board of directors of the society and whether its board allows it or not.
Al Shamsi praised the decision of «Union Cooperative» and its impact on the Association and citizens together, especially as it is «Cooperative» has a place in the market, and achieve high sales annually, in addition to its keenness to employ citizens, which has a good return on the shareholders.
«Cooperative Union»: optional step for associations
ماجد الشمسي Free Membership.
Majid Hamad Rahmah Al Shamsi, chairman of the Consumer Cooperative Union, said that the scope of the decision is now open to all citizens who want to open their door to buy their shares, after obtaining the approval of the Ministry of Economy. He pointed out that taking this step is optional for associations that wish to, and not mandatory.
He said that opening the door for citizens to buy the shares of associations, regardless of their location, aims at first place to increase the income of citizens, and increase investment opportunities in front of them, which is in the interest of the national economy, and give cooperative societies an opportunity to increase their capital through increasing their shares, and increase the value of sales.
He explained that the boards of cooperative societies can also make decisions to expand outside the emirate, in accordance with the law, and open branches in other emirates, subject to obtaining the approval of the Ministry of Economy and local authorities in the emirate which is expanding.
He revealed that the «Union Cooperative», which is headed by a decision in the coming period to work outside Dubai for the first time, based on the law on cooperative societies after the approval of the ministry, and obtain the approval of local authorities in the emirate intends to expand, to form that with the decision to open the door to all citizens By buying stocks, a pillar of expansion and increasing sales, profits and serving of national shareholders.
Future Outlook
A member of the board of directors of a cooperative, (C), said that the adoption of any "cooperative" this decision, requires the approval of the board of directors, and the convening of the general assembly to obtain the approval of shareholders, as well as obtaining the approval of the Ministry of Economy.
He expected that the coming period will see moves by other «cooperatives» to activate the new law, and allow citizens to buy shares after studying and assessing the situation.
A member of the board of a cooperative association (KH) said that the purchase of shares by citizens without adherence to a specific emirate has been a major demand for associations for years, before the Cooperative Societies Law was issued by the Ministry of Economy, because it supports their competitiveness in a free and open market. , While facing fierce competition from other malls.
He expected other cooperatives to conduct extensive studies on this step and its expected results before witnessing a movement on the ground by calling on the General Assembly for approval and obtaining the approval of the Ministry of Economy.