Following the UAE Cabinet’s decision to let cooperative associations trade their shares on the local financial markets, the UAE will become the first country to do so in the region.
This will allow the country’s co-operatives to raise new capital from outside and expand their portfolios.
It is worth mentioning that most cooperatives in the UAE are hypermarkets and in the retail business.
It is said the govt.’s decision will help cooperatives increase their contributions to the national economy and raise their competitive ability.
The UAE had 42 co-operatives with 200 branches operating across the country, with a total capital of more than Dh3.1 billion ($840 million) and a net profit of Dh1bn as of the end of 2020, informs a govt. source.