New cooperatives law will significantly enhance governance

The law further promotes the UAE’s position as a leading country in the cooperatives field, in line with the principles of the 50 and the UAE Centennial 2071 goals: Abdulla bin Touq



by

A Staff Reporter

Published: Thu 29 Sep 2022, 4:50 PM

Abdulla bin Touq, Minister of Economy, said the new cooperatives law, announced by His highness The President Sheikh Mohamed bin Zayed Al Nahyan is a new step towards developing the governance of the cooperatives sector, underlining the sector’s importance in ensuring the diversity and competitiveness of the national economy. In a statement on Thursday, the minister said the law reflects the UAE’s vision to create a successful cooperative economic model based on flexibility and sustainability, thus encouraging the formation of new cooperatives in various priority sectors that are on par with their global counterparts.

"The law further promotes the UAE’s position as a leading country in the cooperatives field, in line with the principles of the 50 and the UAE Centennial 2071 goals,” Bin Touq said.

The minister said the new law emphasizes the collaborative efforts of the Ministry of Economy and its partners from the government, federal, and local entities in the past stage.

The components of the law have been developed based on the country’s vision and its future plans for the development of the cooperative sector, in line with international best practices. This contributes to unlocking broader prospects for all segments to take part in cooperative efforts, specifically since the UAE is one of the leading countries in the field in the region.

Bin Touq added that the UAE now possesses an effective tool to boost the growth of the cooperatives’ businesses and activities, allowing them more space to operate in, expand, and diversify their economic activities and sectors.

The law further offers full protection of the rights of the contributors and ensures trade best practices, by increasing the role of the Ministry and relevant governmental entities in organising the mechanisms of the cooperatives model. It helps establish a vital and advanced legislative and investment environment that encourages the creation of new cooperative ventures.

Furthermore, Bin Touq emphasized that the new law will strengthen the country’s digital economy as it will lead to the establishment of new cooperatives in digital fields and expansion in modern technological activities. The country will therefore be able to keep pace with the recent global developments and realize its vision of mobilizing investments in the new economy sectors.

There are nearly 43 cooperatives in total in the UAE now, operating through 200 branches across the country. Of these, 21 are consumption cooperatives, 14 are fishermen’s cooperatives and seven operate in other fields and federal ones.

— muzaffarrizvi@khaleejtimes.com


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