RELATED: UAE Cabinet approves use of crowdfunding for public and private sectors
The UAE's decision to permit the listing of co-operative societies on the country's capital markets will widen the pool of investors and boost liquidity, analysts said.
The decision, first announced in February, was approved by the Cabinet on Monday, and will "attract strategic partners and introduce new forms such as digital and financial co-ops”, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said.
“Co-operatives are a successful economic model that can be built upon and developed.”
The decision to allow co-operative listings comes after attracting investors within and beyond the UAE to the local bourses.
"The increased participation improves investor confidence in stocks, which then leads to more buying activity and can also help push prices higher," said Bal Krishen, chairman and chief executive of Century Financial.
"The rise in activity further spurs liquidity, which improves the efficiency of trading and better service issuers and investors in their markets."
Both Abu Dhabi and Dubai will benefit from the regional IPO boom, as companies vie to raise capital to fund their expansion. The Abu Dhabi Securities Exchange, the second-biggest Arab stock market, was third best performing market globally last year, one of its most successful, and is up about 67 per cent since the start of this year. The Dubai Financial Market is about 32 per cent higher year-to-date.
Nine companies listed on the ADX last year. They include Adnoc Drilling, which raised $1.1billion in October, as well as Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, which reaped about $795 million. The number of new investors who registered on the exchange in 2021 grew eight-fold to 18,938, while trade volumes increased five-fold to Dh739bn.
Co-operatives are a successful economic model that can be built upon and developed
Sheikh Mohammed bin Rashid,
Vice President and Ruler of Dubai
Dubai plans to list 10 government and state-owned companies on the DFM to increase the market's size to Dh3 trillion ($816.7bn). It also launched a Dh2bn market maker fund to encourage listings and enable secondary trading.
Last week, the Dubai Electricity and Water Authority announced it will list 6.5 per cent of its shares on the DFM, becoming the first government entity to issue an IPO on the bourse. Dewa said it will make 3.25 billion shares available in the offering, all of which are being sold by the government of Dubai.
The sale of minority stakes in government-related entities is a "positive trend that is further developing the debt and equity markets" of the UAE, creating revenue generation opportunities for the government and increasing market transparency due to disclosure requirements for issuing entities, S&P Global Ratings said in a note on Monday.
"The trend is also evidence of the strong financial position of the GREs [government related entities]. We see the sales as credit neutral for the GREs as long as their strong underlying financial positions do not change significantly and the government remains the majority controlling shareholder," it said.
The latest decision to list co-operatives will also allow local bourses the option to establish special platforms to list and trade the associations, said Mohammed Shaheen, chief executive of Seven Capitals.
"For investors, the move is important because it will increase the diversity of local stocks. It will further boost access to funding for small and medium-sized enterprises. Developing a more diverse investors' base would help in increased liquidity, while driving a greater variety of listings would also bring in more liquid retail investors."
Overall, the step to permit co-operatives to list will make the financial market environment more dynamic and help strengthen the regulatory environment of the sector, Mr Krishen said.
"The listings will initially target local investors as they are more aware of the local co-operatives established in the country. However, the increased liquidity will eventually have a domino effect on even the international investors willing to tap into the UAE markets."
The move could definitely drive up listings as new avenues of funding becomes available, analysts say.
"A major factor motivating the co-operative societies have been the need to raise additional funds and better governance standards," said M R Raghu, chief executive of Marmore Mena Intelligence.
"Further expansion of current businesses and funding for new forms of co-ops like digital and financial is expected to drive more listings."
Impact on the co-operatives market in the UAE
Co-operatives, which are primarily supermarkets and retail businesses, are expected to benefit from the increased exposure and financing that a listing provides.
"[The decision] will allow co-operatives to benefit from the advanced services provided by the UAE’s financial markets in terms of transparency, flexibility and speed of procedures, and will also enhance the economic return on co-operative activities," said Mr Shaheen.
"In addition, the resolution offers plenty of benefits to shareholders in terms of preservation of rights, enabling sound practices in trading operations and ensuring their ease and reliability."
The UAE had 42 co-operatives with 200 branches operating across the country, with a total capital of more than Dh3.1bn and net profit of Dh1bn as of the end of 2020, state news agency Wam said.
The country intends to increase their contribution to the gross domestic product to more than 5 per cent by 2031 from less than 1 per cent in 2018.
"Co-operatives are successful business models that can be built upon and developed for new horizons. Their listing on the local bourses will allow them to attract strategic partners," said Mr Krishen.
"Moreover, the decision would enable these associations, which are mostly government-owned, to raise funds needed to expand and diversify their activities. The country aims to improve the regulatory environment for the co-operative sector and enhance its competitiveness."
Listing of co-ops will also mean they are better governed, Mr Raghu said.
"This will in turn help them focus on long term sustainability and drive economic returns thereby, increasing their share in UAE’s gross domestic product and helping in diversification plans."
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
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Brief scores:
Toss: Sindhis, elected to field first
Pakhtoons 137-6 (10 ov)
Fletcher 68 not out; Cutting 2-14
Sindhis 129-8 (10 ov)
Perera 47; Sohail 2-18
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
All Blacks line-up for third Test
J Barrett; I Dagg, A Lienert-Brown, N Laumape, J Savea; B Barrett, A Smith; J Moody, C Taylor, O Franks, B Retallick, S Whitelock, J Kaino, S Cane, K Read (capt).
Replacements: N Harris, W Crockett, C Faumuina, S Barrett, A Savea, TJ Perenara, A Cruden, M Fekitoa.
UAE currency: the story behind the money in your pockets
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20Profile
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
One in four Americans don't plan to retire
Nearly a quarter of Americans say they never plan to retire, according to a poll that suggests a disconnection between individuals' retirement plans and the realities of ageing in the workforce.
Experts say illness, injury, layoffs and caregiving responsibilities often force older workers to leave their jobs sooner than they'd like.
According to the poll from The Associated Press-NORC Centre for Public Affairs Research, 23 per cent of workers, including nearly two in 10 of those over 50, don't expect to stop working. Roughly another quarter of Americans say they will continue working beyond their 65th birthday.
According to government data, about one in five people 65 and older was working or actively looking for a job in June. The study surveyed 1,423 adults in February this year.
For many, money has a lot to do with the decision to keep working.
"The average retirement age that we see in the data has gone up a little bit, but it hasn't gone up that much," says Anqi Chen, assistant director of savings research at the Centre for Retirement Research at Boston College. "So people have to live in retirement much longer, and they may not have enough assets to support themselves in retirement."
When asked how financially comfortable they feel about retirement, 14 per cent of Americans under the age of 50 and 29 per cent over 50 say they feel extremely or very prepared, according to the poll. About another four in 10 older adults say they do feel somewhat prepared, while just about one-third feel unprepared.
"One of the things about thinking about never retiring is that you didn't save a whole lot of money," says Ronni Bennett, 78, who was pushed out of her job as a New York City-based website editor at 63.
She searched for work in the immediate aftermath of her layoff, a process she describes as akin to "banging my head against a wall." Finding Manhattan too expensive without a steady stream of income, she eventually moved to Portland, Maine. A few years later, she moved again, to Lake Oswego, Oregon. "Sometimes I fantasise that if I win the lottery, I'd go back to New York," says Ms Bennett.
Results:
2.15pm: Handicap (PA) Dh60,000 1,200m.
Winner: AZ Dhabyan, Adam McLean (jockey), Saleha Al Ghurair (trainer).
2.45pm: Maiden (PA) Dh60,000 1,200m.
Winner: Ashton Tourettes, Sam Hitchcott, Ibrahim Aseel.
3.15pm: Conditions (PA) Dh60,000 2,000m.
Winner: Hareer Al Reef, Gerald Avranche, Abdallah Al Hammadi.
3.45pm: Maiden (PA) Dh60,000 1,700m.
Winner: Kenz Al Reef, Gerald Avranche, Abdallah Al Hammadi.
4.15pm: Sheikh Ahmed bin Rashid Al Maktoum Cup (TB) Dh 200,000 1,700m.
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
4.45pm: The Crown Prince Of Sharjah Cup Prestige (PA) Dh200,000 1,200m.
Winner: ES Ajeeb, Sam Hitchcott, Ibrahim Aseel.
ENGLAND SQUAD
Team: 15 Mike Brown, 14 Anthony Watson, 13 Ben Te'o, 12 Owen Farrell, 11 Jonny May, 10 George Ford, 9 Ben Youngs, 1 Mako Vunipola, 2 Dylan Hartley, 3 Dan Cole, 4 Joe Launchbury, 5 Maro Itoje, 6 Courtney Lawes, 7 Chris Robshaw, 8 Sam Simmonds
Replacements 16 Jamie George, 17 Alec Hepburn, 18 Harry Williams, 19 George Kruis, 20 Sam Underhill, 21 Danny Care, 22 Jonathan Joseph, 23 Jack Nowell
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
KILLING OF QASSEM SULEIMANI
Brief scoreline:
Wolves 3
Neves 28', Doherty 37', Jota 45' 2
Arsenal 1
Papastathopoulos 80'
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Gully Boy
Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi
Rating: 4/5 stars
Leaderboard
15 under: Paul Casey (ENG)
-14: Robert MacIntyre (SCO)
-13 Brandon Stone (SA)
-10 Laurie Canter (ENG) , Sergio Garcia (ESP)
-9 Kalle Samooja (FIN)
-8 Thomas Detry (BEL), Justin Harding (SA), Justin Rose (ENG)
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
