JEDDAH: Several businessmen have been meeting with the Cooperative Societies Council (CSCS) in the past few days to determine a mechanism for them to begin establishing consumer cooperative societies in a number of governorates.
Some of the points discussed in the meetings were the commodities to be provided, the price reductions expected and the advantages of these societies in terms of the commodities reaching the consumer at the lowest prices possible.
One of the main reasons for higher prices is that goods are provided through several middlemen (importers, wholesalers and then retailers). Cooperative societies import commodities directly, thereby reducing costs and consequently reducing prices for consumers, with shareholders benefiting from the profits that the cooperatives gain by year’s end.
Observers say that recent steps regarding the dossier of cooperative societies would eventually benefit consumers in Saudi Arabia who require consumer cooperatives similar to those in other Gulf countries. Specialists say the establishment of cooperatives would mitigate the effects of inflation, especially in commodities that were sensitive to global changes.
It was agreed during the meetings to postpone discussions on establishing cooperatives offices until after the Haj holiday.
Sources said several businessmen are interested in establishing cooperatives if the government comes forward by providing land for the offices and subsidizing commodities.
Last September the UAE Cooperative Societies Union offered to cooperate and transfer experience to the CSCS to establish consumer cooperative societies in Saudi Arabia and get citizens acquainted with the mechanism of their work. The offer came during a visit by a CSCS delegation, headed by Saleh Al-Khaleel, to the UAE to get acquainted with the country’s experience in cooperatives. Additional visits then followed to other Gulf countries.
The Consumer Cooperative Committee that visited the Gulf countries is now preparing a report that includes a number of recommendations to be submitted to relevant authorities soon.
During their visit to the UAE, the committee visited a number of consumer cooperatives in Abu Dhabi, Dubai and Bani Yas, and met with the head of the Cooperative Societies Union, Majed Al-Shamsi, and other officials from the union and cooperatives.
The CSCS had said that the UAE’s experience in cooperative societies carried high value considering the huge profits they had achieved. There are 18 cooperatives in the UAE with 95 branches. Seven more are being established. Al-Khaleel said the capital of these cooperatives was about 900 million dirhams (SR 918.9 million) and their total sales in 2011 is more than 6.6 billion dirhams (SR 6.7 billion) with shareholders numbering 52,000 owning more than 65 million shares.
Cooperatives interest KSA businessmen
