Dubai: Abu Dhabi’s Department of Economic Development has announced the issuance of a resolution to merge three cooperative societies—Al Ain, Delma, and Al Dhafra—into Abu Dhabi Cooperative Society.
The merger process will be overseen by a committee chaired by Mohammed Juma Al Shamsi, representing Abu Dhabi Cooperative Society, and includes four members: three representatives from the cooperative societies and an independent representative.
The committee’s primary task is to create a comprehensive merger plan, including a thorough evaluation of the three cooperatives. This plan will outline the procedure for transferring shares from Al Ain, Delma, and Al Dhafra Cooperative Societies to the Abu Dhabi Cooperative Society. Additionally, the plan will address the regulation of rights and responsibilities, share distribution, and suggest amendments to the statutes of the Abu Dhabi Cooperative Society to facilitate an effective merger.
Upon completion, the merger plan will be submitted for approval to the Department of Economic Development.
In September 2022, President His Highness Sheikh Mohamed bin Zayed Al Nahyan issued Federal Decree-Law No. 6 of 2022 on cooperatives, a significant milestone in the cooperative sector aimed at enhancing their role in achieving sustainable development, regulating their licensing and operations, and enabling community members to establish cooperatives. The law also aims to strengthen the cooperative sector’s contribution to the country’s non-oil GDP.
Furthermore, in August 2022, the Cabinet approved a law permitting cooperatives to list their shares on local financial markets, trade on stock exchanges, and raise funds through the issuance of bonds, sukuk, or other financial instruments.