The United Arab Emirates has lately announced to allow cooperative associations to list their shares on the financial markets. The cabinet approved trading of cooperative shares on February 17, Thursday, in a move to strengthen the regulatory environment in the region and help cooperatives to drive economic returns.
The cabinet was headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.
The move is said to be helping the cooperatives sector to grow and contribute to the national economy as well as enhance competitiveness. The sector is to benefit with respect to resilience, transparency and swift management of services.
The financial markets need to establish special platforms for cooperative shares registration, trading and transfer as well to make these independent of the IPO as well as public trading platforms on the UAE bourses.
The financial markets now are hovered with power to develop terms and conditions to determine requirements, models, mechanisms, standards and procedures on registration, trading and complaints.
The UAE is the federation of Abu Dhabi, Dubai, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain and Sharjah. It is an elective monarchy and forms the Federal Supreme Council. It has a population of about 9.9 million. It is sixth and seventh-largest in the world in oil and natural gas reserves respectively. It has the most diversified economy and now focusing mainly on business and tourism.
It is a member of the Organization of Islamic Cooperation (OIC), the Gulf Cooperation Council (GCC), the Non-Aligned Movement, OPEC, the Arab League and the United Nations. Each emirate allocates a percentage of revenues to its central budget.
The region has commercial and diplomatic relations with most countries and plays an important role in OPEC. It is one of the founding members of the GCC. Most countries have diplomatic missions here, mainly in Abu Dhabi and Dubai. It has strong ties with China, the United States, Saudi Arabia, Russia, Pakistan, Jordan, India, Egypt, France and Bahrain.
The UAE has become one of the wealthiest states in the world in just fifty years. The average real gross domestic product growth between 2000 and 2018 was nearly 4 percent and it holds the second-largest position in the GCC with respect to the economy. The first is Saudi Arabia.
It offers a strong enabling environment to business houses and over the years has made improvements to its regulatory environment. It is one of the best nations in the world for doing business. Tourism is an important growth sector here and Dubai is the top destination.