A new car cooperative coming up in six months promises to deliver comprehensive one-stop shopping solutions for UAE motorists. The proposed cooperative will deal in cars – both used and new – as well as related services such as insurance, maintenance and even refuelling. It will also deal in spare parts, car recovery, car rental and offer driving instruction, said Mohammed Abdullah Al Abdoul, the brain behind the idea. “Feasibility studies were made for each activity of the cooperative and the backers will apply for registration with the Ministry of Labour and Social Affairs within a month,” Al Abdoul said.
A second and third stage of growth for the company will see it expand its services phenomenally. All activities at the cooperative are designed to make buying a car and availing related services as easy and convenient as shopping for groceries. The business will have a tough task with fierce competition from car agents and other key players in related businesses. But Al Abdoul, a businessman and founder of the Housing Co-operative Society, said these stores will be complimentary to existing companies and will cooperate with them. He is especially upbeat because after 2005, when GATT and free trade regulations will be enforced, since businesses will be able to import cars directly from manufacturers. Subscription to the cooperative share ownership is open to UAE nationals only, with a share value of Dh1. A subscriber is required to buy a minimum of 10,000 shares but not more than 200,000.
