Dubai, UAE – The UAE has issued a law establishing ‘Parkin’, a public joint stock company (PJSC) that will oversee operations related to parking spaces in Dubai.
The newly established company will have financial, administrative and legal autonomy to fulfil its responsibilities, WAM reported.
Also, the company’s duration is set at 99 years, commencing from the date of its registration, and will be renewed for a similar period.
Parkin PJSC is likely to be tasked with creating, planning, designing, operating and managing public parking spaces in accordance with legislations regulating them.
It is also responsible for issuing permits to individuals, enabling them to subscribe to public parking, utilize and operate it, and to reserve parking spaces in accordance with the franchise contract.
Moreover, the company is entrusted with the establishment, design and management of private parking spaces, as well as investment in related business activities, among other responsibilities.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, issued Executive Council Resolution No. (121) of 2023, forming the Board of Directors of Parkin PJSC.
The Board will be chaired by Ahmed Hashem Bahrozyan, while Ahmed Hassan Mahboub will serve as Vice Chairman.
Other members of the Board include: Muna Abdulrahman Al Osaimi, Nasser Hamad Abu Shehab, Alawi Ali Al Sheikh, Mona Mohammad Bajman, and Al Anoud Thabit Al Ameri.
The Resolution is effective from the date of its issuance and will be published in the Official Gazette.
The Resolution defines the authority and responsibilities of the Board of Directors, among which are the approval of the company’s strategic plans and policies.
This also includes the issuance of financial, administrative, technical, and procurement regulations for the company, the management of its assets, the approval of its organizational structure and the validation of contracts and agreements signed by the company.
Law No. (30) of 2023 mandates the RTA to delegate certain or all of its responsibilities related to public and private parking, as well as the issuance of relevant permits as outlined in Executive Council Resolution No. (5) of 2016 and existing regulations in the emirate.
This handover of duties is to be facilitated by a franchise agreement to be finalized between RTA and Parkin PJSC.
The company’s issued and paid-up capital shall be determined in accordance with its articles of association.
All the company’s shares are fully owned by the Government of Dubai. The Executive Council of Dubai has the authority to determine the percentage of shares that may be transferred to third parties through public or private subscription.
The company’s liability is limited to its paid-up capital, and the responsibility of its shareholders is limited to the nominal value of the shares they own.
The Law permits individuals to own shares in the company through public or private subscription.
The ownership percentage of the Government of Dubai must not fall below 60% of the company’s capital when its shares are offered for subscription.
According to the Law, the company’s articles of association will be approved by the Chairman of The Executive Council of Dubai.
The Law also defines the areas that should be included in the articles of association.
Furthermore, the Law allows the transfer of certain employees from RTA to Parkin PJSC, through a decision issued by the RTA’s Chairman, without compromising their rights.
The Law annuls any other legislation that contradicts it. The Law is effective from the date of it issuance and will be published in the Official Gazette.