June 13, 2024

Ministry of Economy: Cooperative revenue hits AED 7.5 billion in 2022, marking 7% growth

 The Ministry of Economy released a comprehensive report detailing the exceptional financial and operational performance of the UAE’s cooperative sector for 2022, underscoring its vital role in strengthening national economic growth and enhancing competitiveness. The report revealed that total cooperative revenues surged to AED 7.5 billion in 2022, marking a 7 per cent increase compared to 2021. Profits also witnessed a significant rise, reaching AED 723 million with an 11 per cent growth during the same period.

According to the report, the number of cooperative societies in the country’s markets had risen to 44 by the end of 2022, marking a 5 per cent increase from 2021. This growth brought the total number of cooperative outlets to 241, reflecting an 8 per cent expansion. The number of workers in cooperatives reached 13,500 by the end of 2022 with a 7.4 per cent settlement rate, while the number of members contributing to cooperatives reached 104,000 with a growth of 4 per cent in the same period.

The report highlighted the rapid growth of the cooperative sector, which has expanded across numerous economic activities and sectors. By 2022, this sector’s contribution to the country’s GDP had reached 0.54 per cent. This progress aligns with national targets, aiming to raise the sector’s GDP contribution to 5 per cent and increase the number of contributors to 500,000 by 2031.

H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized that the Ministry is constantly working with local authorities to enhance the cooperative sector and broaden its activities according to international best practices. This sector is regarded as one of the most important contributors to the diversification and competitiveness of the national economy. Additionally, the Ministry aims to enhance the sector’s resilience, positioning it as a major contributor to the country’s vision for a shift towards a new economic model based on flexibility and innovation.

He added: “The Ministry of Economy is implementing a new strategy to shift the responsibility for regulatory oversight of the cooperative sector to local authorities in each emirate. This initiative aligns with the policies and legislation of the seven emirates and aims to enhance data management as a key tool for strategic economic decision-making.”

He noted that this strategy will aid in developing digital infrastructure for managing cooperatives nationwide, thereby boosting their economic contribution and strengthening the UAE’s position as a leader in modern and renewable economies.

The country recently promulgated Federal Act No. 6 of 2022 on the cooperative sector, marking a significant shift in the development of guarantor policies for this sector. This law enables the formation of cooperatives in new areas and the diversification of their activities. The Ministry adopted two main targets in the light of this law: to increase the proportion of cooperatives’ contribution to non-oil GDP to 5 per cent by 2031, and to increase the number of contributing members in cooperative associations to approximately 500,000.

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    Middle East News 247

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