The Ministry of Social Affairs has recently issued executive and basic regulations respectively for planned cooperative societies and any new venture. These socities are mainly meant to serve the community by selling goods at lower prices. They would help both citizens and expatriates in facing the recent steep hike in prices of essential commodities. The 55-article regulations include the way cooperative societies should be managed. In addition, regulations included profit distribution system, supervision and facilitations granted to cooperative societies by the Ministry of Social Affairs. The regulations were made according to a Royal Decree to establish such cooperative societies. The Royal Decree was issued on suggestions from the Shoura Council and a decision from the Cabinet. According to Article 3 of the regulations, the aim of these cooperative societies is to improve members' social and economic status in production, consuming, marketing and services. According to Awadh Al-Raddadi, Undersecretary for Social Care and Development, regional branches of the Ministry of Social Affairs will supervise work in these societies. These societies will work independently, Raddadi added. The ministry will arrange meetings with those interested in these societies and give an approval after studying their proposals, he said. “Prospective founders are required to furnish a feasibility study that determines the projects' viability,” Raddadi added. Every founding member of a cooperative society has the right to own not more than 10 percent of the capital as long as his membership is active. “A society should have at least 12 members, but the minister can grant exception for a five-member society,” Raddadi said. “Investors should not go into industrial investments that take their societies away from the goal they were founded for,” Ali Daggag, an academic economist told Saudi Gazette. He added that these societies would open new investment social and economic channels. __
