DUBAI, 26th November, 2024 (WAM) -- The Union Coop has begun studying the transition from a consumer cooperative society to a public joint-stock company (PJSC).

The decision was announced during the Board of Directors meeting on Monday and forms part of the cooperative's strategy to enhance its financial resources, boost competitiveness, and meet its long-term goals, including expanding its reach, developing projects, and improving services for shareholders, customers, and the community.

This transformation aligns with Union Coop's efforts to keep pace with the developments in the UAE's retail sector, in line with the leadership's vision.

If realised, the transition is expected to contribute to the local economy while strengthening transparency and governance systems. The Union Coop would operate under the regulations governing public joint-stock companies, subject to stringent regulatory oversight. This would enhance transparency, improve credibility in financial transactions, and increase shareholders' confidence in the company's operations.

The move to a PJSC would offer several benefits, including new investment opportunities for shareholders, who would benefit from the company's performance and financial results. Shareholders would also have the chance to diversify their portfolios through stock trading on the financial market, potentially increasing long-term returns. The transition would also enable Union Coop to expand into new regions, providing services to a wider customer base and implementing best corporate governance practices.

Following a request by the 2023 General Assembly, Union Coop appointed Al-Tamimi Company to conduct a comprehensive study on the feasibility of this transformation. The study will assess the legal and financial implications, along with a review of relevant regulations, and will be presented to the relevant authorities and the General Assembly for a final decision.