«Economy»: an increase of 81% in 10 years

96,500 shareholders in state “cooperatives” at the end of 2020

Union Coop in Dubai is the largest in terms of the number of shareholders, with a total of 35.1 thousand shareholders.

archival

The Ministry of Economy revealed that the number of shareholders of cooperative societies operating in the country rose to 96,545 at the end of last year, compared to 53,351 at the end of 2011, an increase of about 81% over 10 years.

A recent report issued by the Ministry of Economy on the development of cooperatives during 10 years, and "Emirates Today" obtained a copy of it, showed that the number of cooperatives in the country increased from 34 cooperatives at the end of 2011 to 42 cooperatives by the end of 2020, an increase of 23.5%

According to the report, the Union Cooperative in Dubai, the largest in terms of the number of shareholders, with a total of 35,112 shareholders at the end of last year, compared to 17,236 shareholders at the end of 2011, an increase of 103.7%, followed by the Sharjah Cooperative Society with a total of 22,357 shareholders at the end of the year 2020, compared to 16,143 shareholders at the end of 2011, then Al Ain Cooperative Society third with a total of 6,336 shareholders at the end of last year, compared to 1,792 shareholders at the end of 2011, an increase of 253.6%.

Cooperatives in each emirate

With regard to the number of cooperatives in each emirate, the report indicated that the number of cooperatives in Abu Dhabi rose to 19 cooperatives at the end of last year, compared to 13 cooperatives at the end of 2011, while the number of cooperatives in Dubai rose to seven cooperatives, compared to five during the same period. The number of cooperatives in the rest of the emirates has been stable over the past 10 years, as their number reached seven cooperatives in Sharjah, three cooperatives in Fujairah, as well as two cooperatives in Ras Al Khaimah, Umm Al Quwain and Ajman by the end of 2020.

Cooperative forms

The report indicated that the forms of cooperatives diversified significantly, to include cooperative unions, consumer cooperative societies, fishermen’s cooperatives, consumer service cooperatives, rental cooperatives, housing and construction cooperatives, craft cooperatives, and various service cooperatives.

Consumer Cooperatives

According to the report, consumer cooperatives acquired the largest share of cooperatives, with a total of 20, followed by fishing cooperatives with a total of 13, in addition to three consumer service cooperatives, two consumer cooperation unions, and one cooperative for each of the other forms of cooperatives.

Reasons for the increase

In addition, the retail trade expert, head of Al Bahr Consulting Company, Ibrahim Al-Bahr, attributed the significant increase in the number of cooperative shareholders, to the fact that the UAE and its economic and investment activity were not significantly affected by the “Corona” pandemic, at a time when other countries laid off tens of thousands of employees, and reduced Employee salaries at rates of up to 50%, which has maintained high standards of living in the country that allow investment, in addition to the success of cooperatives in achieving profitable profits for shareholders of Emirati citizens, and there is a consensus that contributing to societies is a halal activity in which there is no doubt.

non-citizens

Al-Bahr demanded that non-citizens be allowed to invest in associations, by opening a percentage of at most 25% to non-citizens, which increases the number of shareholders significantly, noting that the return of life to normal, and the subsequent return of activity to the economic sectors, most notably the Expo 2020 Dubai. “It increases the sales of the associations significantly, which benefits the shareholders.

Al-Bahr expected that the number of shareholders in associations will continue to increase in the coming years, driven by the great economic activity, and the new Associations Law, which allows associations to open branches in any emirate, which allows associations to expand significantly, increase their profits, and attract more shareholders.

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