UAE Cabinet approves use of crowdfunding for public and private sectors

String of announcements made at final Expo 2020 Dubai Cabinet meeting

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Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has led the final Cabinet meeting at Expo 2020 Dubai.

He outlined some of the decisions signed off during Monday's meeting at the UAE pavilion.

Sheikh Mohammed announced the Cabinet had approved the use of crowdfunding in the public and private sectors to finance new projects, saying it was one of the best means to secure funding for innovative commercial ideas and would help young people and entrepreneurs.

Crowdfunding works by raising money, typically through the internet, from a large group of people.

The UAE System for Crowdfunding Platform Operators will be regulated by the Securities and Commodities Authority (SCA), news agency Wam said.

Sheikh Mohammed also said the Cabinet had adapted a new system for work injuries that will protect the rights of workers in the private sector if they are hurt on duty. The federal legislation will specify the mechanism for reporting and investigating an injury as well as how injured workers should be compensated.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, heads the last meeting of the Council of Ministers at Expo 2020 Dubai. Photo: @HHShkMohed via Twitter

He said the Cabinet had also adopted the UAE Gender Balance Council Strategy 2022-2026 to enhance the presence of women in leadership positions.

The council's strategy includes four main pillars: economic participation, well-being, protection and entrepreneurship and aims to further reduce the gender gap across all sectors.

The Cabinet also adopted a new law that allows co-operative societies — which are primarily supermarkets and retail businesses — to be listed on the UAE's financial markets to attract new partners.

“We approved today a new law for co-operative associations in the UAE allowing them to be listed in our financial markets, attract strategic partners and introduces new forms such as digital and financial co-ops,” Sheikh Mohammed said.

“Co-operatives are a successful economic model that can be built upon and developed.”

The decision was first announced in February and comes as Dubai plans to list 10 government and state-owned companies on the Dubai Financial Market to double its size to Dh3 trillion ($816.7 billion).

Abu Dhabi Securities Exchange (ADX), the second-largest market in the Arab world, has recently enjoyed a series of successful initial public offerings, including Adnoc Drilling, which raised $1.1bn from its listing in October.

The new Co-operatives Law allows for the establishment of new types of co-operatives, including digital, financial and professional.

The meeting also approved the National Strategy for Nursing and Midwifery, which aims to enhance the professions and ensure proper planning of the nursing and midwifery workforce in terms of recruitment and retention.

The Collective Labour Disputes Committee will also be established following approval by the Cabinet. The committee, headed by Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, will consider disputes referred by the ministry in which the number of workers involved exceeds 100.

Updated: March 21, 2022, 5:03 PM
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