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Trading process will be simpler with greater price transparency through Nasdaq Dubai
Physical share certificates will be converted to electronic form
Dubai – Union Coop, the UAE’s largest consumer cooperative, has announced that it will convert its physical share certificates to electronic form through an innovative solution provided by Emirates Islamic, one of the leading financial institutions in the UAE through its brokerage arm, Emirates Islamic Financial Brokerage (EIFB). The shares will be held on Nasdaq Dubai’s Central Securities Depository (CSD), thereby simplifying and improving the trading process for Emirati investors. The transfer of the certificates on to Nasdaq Dubai’s CSD will take place later this year.
Union Coop is owned by over 30,000 UAE nationals, who currently buy and sell share certificates manually at the Company’s shareholder centre at Etihad Mall. Through this agreement with Emirates Islamic and Nasdaq Dubai, Union Coop will move its shares to an electronic platform in order to centralise the process, providing a single market price that is visible to everyone, based on overall supply and demand.
Shareholders will be able to trade their shares through Emirates Islamic, using multiple channels including the EIFB online platform, mobile app or over the phone. Shareholders will have the convenience of “spot settlement”, with the instant transfer and receipt of shares. The shares will be held in Nasdaq Dubai’s CSD, providing an electronic register of the shares, allowing shareholders to easily keep account of their holding.
Khalid Al Falasi, CEO of Union Coop, said: “As we further extend our store network and enhance our services to customers, we are delighted to also modernise and upgrade the system by which Dubai-based Emiratis can trade share certificates of Union Coop. The trading process will benefit from the cost-effective and seamless technology provided by Emirates Islamic and EIFB, which are among the UAE’s leading financial services institutions.”
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “We are delighted to provide support to Union Coop, one of the UAE’s leading retailers, and its tens of thousands of investors as well as other Emiratis who may wish to buy its share certificates for the first time. Nasdaq Dubai is committed to providing transparency and efficiency in all transactions for its market participants through its first class capital markets infrastructure.”
Jamal Bin Ghalaita, CEO of Emirates Islamic, said: “This announcement is aligned to Emirates Islamic’s commitment to develop innovative, digital-driven Shari’a-compliant financial services. As a key partner of Union Coop, we are pleased to support the company’s transition to electronic share trading, further strengthening our ties with the Emirati investor community. Trading Union Coop shares using EIFB’s multiple channels will now be transparent, risk-free and as easy and straightforward as trading shares in a listed company.”
Information about how the new electronic trading process will work can be viewed at http://corporate.unioncoop.ae/shareholders.aspx
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About Nasdaq Dubai
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
About Union Coop
Union Coop was established by Ministerial Resolution No. 31/2 dated May 24, 1982, issued by the Ministry of Labour and Social Affairs at the time. The aim of the establishment is to enhance the social and economic conditions of members and to serve the local community in where it operates. Following best international practice in the retail sector, Coop’s main activities are to establish hypermarkets and manage cooperatives within UAE. Union Coop is the largest consumer cooperative in UAE as it operates 13 branches and two malls (Barsha Mall, Etihad Mall). Union Coop has also launched two grocery chains: (Fresh’n 1, the first endowment grocery store worldwide and COOP, a new concept making it the first consumer cooperative to include a smart shopping concept in many of its branches in MENA region.
In addition, Union Coop plays an active role in stabilising prices through promotional campaigns and offering real-value offers and give prizes worth tens of millions yearly. Union Coop’s outlets offer a wide range of products from food and electronics to hardware and household appliances.
About Emirates Islamic
Established in 2004, as Emirates Islamic Bank, Emirates Islamic is one of the fastest growing banks in the UAE. Combining the best in Shari’a compliant services with the strongest levels of customer care and efficiency, the bank has established itself as a major player in the highly competitive financial services sector in the UAE. Offering products and services developed in line with the highest ethical standards, Emirates Islamic gives customers the transparency they seek in a strong, honest financial partner.
Emirates Islamic offers a comprehensive range of products and services across the Personal, Business and Corporate banking spectrum with a network of 64 branches and 204 ATMs/CDMs across the UAE. In the fast growing area of online and mobile banking, the bank has the reputation as an innovator, and was the first Islamic bank to launch a mobile banking app and the first bank in the Middle East to launch an App on the Windows 8 mobile platform.
Emirates Islamic has consistently received local and international awards, an acknowledgement of the bank’s strong record of performance, growth and market leading banking practices. The bank was named ‘Best Islamic Bank in the UAE’ at the 2015 World Finance Awards and also won the prestigious Euromoney Award for Innovation in Islamic Finance 2015. In the Islamic Business & Finance Awards 2015, the bank was named ‘Best Retail Bank, UAE’; ‘Best Commercial Bank, UAE’; and ‘Best Wealth Management, ME’. The bank won several industry accolades in 2016, including Innovator in Islamic Finance by Global Finance magazine for EI trade, the world’s first of its kind Shari’a-compliant online Trade Finance and Supply Chain platform and Fastest Growing Bank – UAE at the Banker Middle East Industry Awards 2016.
© Press Release 2018
