According to a decision of the Council of Ministers
Permission to trade the shares of cooperative societies in the financial markets
The decision supports the growth of cooperatives and the diversification of their activities.
Photography: Ahmed Ardeti
The Cabinet, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved a decision regarding the trading of cooperative societies' shares in the country's financial markets, aimed at enhancing the regulatory environment for the cooperative sector and raising its competitiveness, in line with the directions of the state. .
The decision aims to develop the regulatory and supervisory process for trading shares in the capital markets in the country, and to create new opportunities for improvement and development, with regard to trading in cooperative shares. The advanced and innovative provided by the financial markets in the country, in terms of transparency, flexibility and speed of procedures.
The resolution supports stimulating the growth of cooperatives and giving them more space to work, expand and diversify the activities and economic sectors in which they operate, while providing full protection for shareholders’ rights, ensuring the best commercial practices of cooperatives, and preserving the concept of cooperative work as a parallel model to the concept of traditional commercial activities, and at the same time a vital tributary For the growth of the economy and the prosperity of society.
According to the decision, the financial markets are allowed to establish special platforms for registering, trading and transferring the ownership of the shares of cooperative societies, so that they are independent from the subscription and general trading platforms in the market, which provides an opportunity for the shareholders of cooperatives to trade shares, under the supervision of regulatory and supervisory authorities, as well as determining the real price of the share, in Full transparency, and based on supply and demand factors, away from any irregular trading, which increases the confidence of shareholders.
The decision specified granting the financial markets the power to set and introduce terms, conditions and controls in which all procedures, standards, requirements, models and mechanisms regarding registration, trading, grievance and others are defined, in a way that contributes to protecting shareholders’ rights and ensuring the foundations of fair investment for them.
The decision included that the financial markets, when registering and trading cooperative shares, play the role of registrar, as they take over the task of keeping the register that shows the membership of cooperative shareholders, the number of shares, and any relevant details, such as profits, and any other notes related to registration and trading.
The step of allowing cooperative shares to be traded and listed in the country’s financial markets, which is the first of its kind in the region, represents a new and advanced station in the matter of organizing the cooperative sector and enhancing the economic return on cooperative activities, while at the same time achieving wide benefits for shareholders, in terms of preserving rights. Enable sound trading practices in trading operations, and ensure their ease and reliability.
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