Dubai’s retail giant, Union Coop, is actively exploring a significant transition from a consumer cooperative society to a public joint stock company. This potential shift aims to enhance transparency, improve market efficiency, and further align the retailer with Dubai’s broader financial strategy. Union Coop, which already made history by becoming the first cooperative society to direct-list its shares on the Dubai Financial Market (DFM) in mid-2022, continues to evaluate ways to solidify its market position and expand growth opportunities.
Union Coop’s CEO, Khaled Al Falasi, has emphasized that this strategic move is rooted in the cooperative’s long-term commitment to its members. By transitioning to a public joint stock company, Union Coop seeks to offer greater value and operational flexibility while expanding its ability to attract diverse investors. This transition is expected to build upon the cooperative’s legacy of financial excellence, with its net profits achieving a compound annual growth rate of over 20% since its establishment in 1984. As of 2021, the retailer recorded a net profit of AED 413 million, a testament to its robust financial performance and prudent cost management strategies.
Union Coop’s direct listing on the DFM allowed members to trade its shares alongside other prominent companies, marking a pivotal moment for cooperatives in the UAE. With shareholder equity exceeding AED 3 billion and a wide consumer base, Union Coop’s presence on the DFM highlights its significant role in the consumer staples and discretionary sector. This listing aligns with Dubai’s financial market development initiatives, which aim to diversify investment opportunities and strengthen the regulatory framework governing cooperatives.
The cooperative has expanded significantly since its inception, growing from two branches in 1984 to 24 branches and four malls as of 2021. With a membership base exceeding 36,000, Union Coop has become a cornerstone of the UAE’s retail sector. The transition to a public joint stock company would further enable the organization to leverage capital markets for growth, introducing innovative services and ensuring sustained profitability.
Dubai’s broader economic vision underpins this move, with the government prioritizing initiatives that enhance the competitiveness of key sectors, including retail. By aligning with this vision, Union Coop not only aims to elevate its operational standards but also to contribute to Dubai’s standing as a global financial hub. The DFM’s leadership has expressed support for this evolution, emphasizing the critical role of cooperative entities in the economic fabric and their potential to attract international investors.
The decision to potentially transform into a public joint stock company comes as Union Coop continues to adapt to the evolving retail landscape. Increased competition and the need for digital transformation have prompted the retailer to reevaluate its strategies. A public structure would provide access to additional resources for investment in technology, logistics, and customer engagement, ensuring that Union Coop remains competitive in a fast-changing market.
