Al Bayan, 27 September 2022: The UAE’s President has issued Federal Decree-Law No. 6/2022 regarding cooperatives.
Its provisions will apply to established or existing cooperatives when the Decree-Law is issued.
The Decree-Law aims to improve the role of cooperatives in achieving sustainable development, regulate the licensing and work of the cooperative sector and its activities in the country and enable community members to establish cooperatives.
Under the Decree-Law, cooperatives can allocate a percentage of their annual profits or accumulated profits to social responsibility after the approval of the competent authority and the issuance of a decision by the General Assembly.
The cooperative must also disclose its profits on its website.
The Cabinet will issue the Implementing Regulations to the Law based on a Ministerial proposal within six months from the implementation date.
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