MUSCAT, APRIL 26
The potential for the growth of consumer cooperatives in the Sultanate of Oman was highlighted at a Ramadhan Evening hosted by the Oman Chamber of Commerce and Industry on Monday night.
Held under the auspices of Qais bin Mohammed al Yousuf, Minister of Commerce, Industry and Investment Promotion, various local and regional speakers underlined the economic and social benefits that accrue to local communities from the operation of consumer cooperatives. They discussed the importance of consumer cooperatives, the mechanisms of organising and regulating these entities in the Sultanate of Oman, and prospects for benefiting from the experiences of developed countries in this field.
A cooperative is described as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise. Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.
According to Anwar Jassim Bourahma, an expert on cooperatives from Kuwait, around 75 cooperative societies are currently operating in the State of Kuwait. “The first cooperative association was established in Kuwait in 1941, while the law regulating such cooperatives was issued in 1961. Today, there is a Union of Kuwaiti Associations with 12 societies.” Addressing the forum Bourahma nevertheless stressed the importance of integrity in the running of successful societies. “One of the most important things that helps the success of cooperatives is the existence of a successful and honest board of directors and the presence of financial control from the government to maintain credibility and ensure that there are no differences in the boards of directors,” he stated, adding: “Cooperatives contribute to creating jobs for new graduates and students, as well as providing food for the country.” Sharing the experiences of the Oman Cooperative, which was established in 2015, Jamal Abdullah al Mulla, Vice-Chairman of the Board of Directors, said the entity began operations in 2018 with a capital of RO 318,000. However, as the cooperative opened new consumer stores, it began to attract additional local investors, which helped boost the capital of Oman Cooperative to RO 2 million.
But he cautioned that cooperative societies can face challenges too. “One of the most important challenges facing us is sourcing supplies, cost of electricity, customs duties, and also the fact that there is no land allocated to such projects by the government,” he lamented.
“A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise. Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.”
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