She emphasized that the cooperative does not need to amend its articles of association
The Economy defines the procedures for listing and trading cooperative shares
The Ministry of Economy confirmed that the cooperative sector is on the cusp of a new phase of growth and prosperity.
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Abdullah bin Touq: "The step contributes to creating an innovative cooperative model that is flexible and sustainable, and keeps pace with new economic trends."
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The Ministry of Economy confirmed that the cooperative sector in the UAE is on the cusp of a new phase of growth and prosperity after the new law allowed the listing of cooperatives in the country’s financial markets, explaining that a cooperative wishing to list and trade its shares must submit an application to the relevant financial market, accompanied by a copy of the decision. The Ordinary General Assembly and any documents specified by the concerned market, in addition to sending copies of the application and decision to the Ministry of Economy and the Securities and Commodities Authority.
The Ministry added, in a statement yesterday, that the financial market will consider the application in accordance with the applicable controls, and then notify the cooperative of its decision within 30 days from the date of fulfilling the application requirements, in accordance with the provisions contained in Decree-Law (No. 6) of 2022 regarding cooperatives, as well as the provisions contained in the Council’s decision. Ministers (No. 2) for the year 2022.
The Ministry indicated that the cooperative does not need to amend its articles of association with regard to the registration and trading process, even if the system stipulates that. As for amending any other requirements other than registration and trading, such as the assignment of shares by members to others, this requires alignment with the articles of association and amendment to According to the procedures followed.
The Ministry affirmed its keenness to continuously communicate with its partners, headed by the Securities and Commodities Authority, and the financial markets in the country, to enhance the performance of cooperatives, provide full protection for shareholders’ rights, ensure the best commercial practices for them, and preserve the concept of cooperative work as a model parallel to the concept of traditional commercial activities and at the same time a vital tributary for growth. economy and community prosperity.
The Minister of Economy, Abdullah bin Touq Al-Marri, said that the cooperative sector is expected to achieve qualitative leaps that support the sustainable growth of the national economy, and contribute to accelerating the pace of the state’s transformation to the new economic model based on flexibility and sustainability in light of the forward-looking vision of the wise leadership, and in line with the goals and projects of the fifty. coming years.
He added that the law allowing the listing and trading of cooperative shares in the country's financial markets represents an important step that contributes to creating an innovative cooperative model characterized by flexibility, sustainability and the ability to keep pace with new economic trends, by maximizing the benefit of cooperatives from the advantages, ingredients and innovative services provided by financial markets, in a way that enhances From the economic return on the activities of cooperatives, and achieve wide benefits for shareholders in terms of preserving rights and enabling sound practices in trading operations and ensuring their ease and reliability.
Bin Touq pointed out that the UAE is the first to take this step in the region, as it will enhance the confidence of shareholders and develop the regulatory and oversight process for stock trading, and create new opportunities for improvement and existing development in terms of trading in cooperative shares in financial markets, in a way that achieves the interests of cooperatives. and shareholders alike.
Proactive and flexible approach
The Ministry of Economy worked on developing the new cooperative law in cooperation with its partners from the federal and local government agencies and bodies during the last stage, as the articles of the law were developed with a proactive and flexible approach that anticipates future trends.
It was based on comparative studies that included countries with advanced ranks in the cooperative sector, as it was discussed in the Federal National Council to ensure that updated and integrated legislation follows best practices and is commensurate with the requirements of the business environment in the country during the next stage.
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