ABU DHABI // The Minister of Social Affairs has called on cooperative societies to join together and buy in bulk to help increase profits and reduce operational costs.
During a three-hour debate, Mariam Al Roomi said co-operative societies would gain from actual cooperation.
“We want them to join together to buy at least one item,” she said. “I do not know a lot about business, but it would have a good effect on profit.”
Ms Al Roomi, whose ministry oversees co-operative societies and regularly inspects them, said over the years their business model had succeeded and they had made profits, contrary to some beliefs.
She said Emiratis had been loyal to co-ops even with other shopping options.
“I think they are on the right track.”
Members criticised co-ops for not opening branches in other emirates, but the minister said the decision was up to local governments.
She said the ministry welcomed expansion, but local governments wanted to protect their own co-operatives.
Members also criticised the 1976 law governing co-operatives, which they said was outdated and not in line with the country’s economic development.
The minister said her agency had drafted a new bill that incorporates parts of the British, Singaporean and Canadian laws on co-operative societies.
The bill will be reviewed by the co-ops in February, she said.
The minister also applauded Al Ain co-operative society for opening branches in residential areas.
She said that despite unappealing business prospects, the society worked as a true co-op to help meet people’s needs.
osalem@thenational.ae
