The UAE Cabinet has approved a decision on the trading of shares of cooperatives on the financial markets, according to official sources.
The cabinet meeting was headed by UAE Vice-President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, who is also the ruler of Dubai.
The move is said to be conducive to strengthening the regulatory environment of the cooperatives sector and driving their economic returns.
The development is apparently the first of its kind in the region.
It is said to be aimed at growing the cooperative sector’s contributions to the national economy.
It will also reportedly enhance the cooperatives’ 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 is expected to allow 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 move reportedly gives the financial markets the power to establish and develop terms and conditions that determine procedures, standards, requirements, models, and mechanisms on registration, trading, and complaints.
