The United Arab Emirates approved on Thursday a decision allowing cooperative associations to list shares on the local financial markets, state news agency (WAM) reported.
Headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the cabinet approved a decision on the trading of shares of cooperatives on the financial markets in a move conducive to strengthening the regulatory environment of the cooperatives sector and driving their economic returns.
The development, the first of its kind in the region, is aimed to grow the cooperatives' sector contributions to the national economy, enhance their competitiveness and help the sector benefit from the disruptive services provided by the UAE bourses in terms of transparency, resilience and swift management of services.
The decision allows the financial markets to establish special platforms for the registration, trading and transfer of the shares of cooperatives, so that they are independent of the IPO and public trading platforms on the bourses.
The decision invests the financial markets with the power to establish and develop terms and conditions that determine procedures, standards, requirements, models and mechanisms on registration, trading and complaints.
