Official Gazette publishes Cabinet approval of Cooperatives Law

Saudi Arabia’s Official Gazette, Umm Al-Qura, has published Cabinet Decision No. 278, dated March 19, 1448 AH, regarding the Cooperatives Law project.

According to Umm Al-Qura, the decision followed a review of the Royal Court’s correspondence No. 922 dated Muharram 3, 1448 AH, which included a letter from the Minister of Human Resources and Social Development, No. 169130 dated Ramadan 5, 1443 AH, concerning the Cooperatives Law project.

The decision was made after reviewing the draft law, the Cooperative Societies Law issued by Royal Decree No. M/14 dated Rabi Al-Awwal 10, 1429 AH, Royal Decree No. M/94 dated Shawwal 22, 1442 AH, Cabinet Decision No. 618 dated Shawwal 20, 1442 AH, and the regulations for the National Center for Non-Profit Sector Development issued by Cabinet Decision No. 618 dated Shawwal 20, 1442 AH. It also considered reports No. 356 dated Dhu Al-Hijjah 18, 1444 AH, No. 157 dated Ramadan 5, 1446 AH, and memoranda No. 3896 dated Dhu Al-Qi’dah 13, 1445 AH, No. 112 dated Muharram 5, 1446 AH, No. 2395 dated Rajab 6, 1446 AH, No. 4138 dated Dhu Al-Hijjah 24, 1446 AH, No. 1509 dated Rabi Al-Thani 21, 1447 AH, No. 2046 dated Jumada Al-Awwal 29, 1447 AH, No. 3328 dated Ramadan 27, 1447 AH, and No. 464 dated Safar 13, 1448 AH, prepared by the Bureau of Experts at the Cabinet.

The decision also followed a recommendation from the Council of Economic and Development Affairs No. 2-1/46/T dated Muharram 26, 1446 AH, a letter from the Secretariat of the Council of Political and Security Affairs No. 11705 dated Rajab 29, 1447 AH, and a recommendation from the Council of Economic and Development Affairs No. 14-33/47/D dated Sha’ban 17, 1447 AH. It also considered Shura Council decisions No. 118/11 dated Jumada Al-Thani 1, 1446 AH, and No. 415/35 dated Dhu Al-Hijjah 24, 1447 AH, as well as the recommendation of the General Committee of the Cabinet No. 2475 dated Rabi Al-Awwal 5, 1448 AH. The following was decided:

First: Approval of the Cooperatives Law in the attached form.
Second: Cancellation of Clause (Second) of Royal Decree No. M/94 dated Shawwal 22, 1442 AH.
Third: The term “cooperative” shall replace “cooperative society” wherever it appears in regulations, orders, decisions, and instructions.

Fourth: Existing cooperatives at the time this law comes into effect—referred to in Clause (First) of this decision—must amend their status and bylaws within twelve months from the law’s effective date to comply with it and its executive regulations. A draft Royal Decree has been prepared accordingly and is attached.

Fifth: The Ministry of Human Resources and Social Development shall coordinate with government entities to provide facilities and privileges supporting cooperatives in their operations, without contravening regulations, orders, and instructions. The ministry, in agreement with the Ministry of Finance and the Ministerial Committee for the Social Support and Subsidies System, may provide additional support to cooperatives to help establish, launch, and overcome challenges.

Sixth: The Ministry of Human Resources and Social Development, in agreement with the Ministry of Finance and the Ministerial Committee for the Social Support and Subsidies System, shall develop a specific mechanism for providing the support and subsidies mentioned in Clause (Fifth), including their types, eligibility criteria, and distribution methods.

Seventh: The Ministry of Human Resources and Social Development shall review support for the cooperative sector as outlined in Clauses (Fifth) and (Sixth), and submit a report after five years from the law’s effective date—referred to in Clause (First)—including its recommendations on whether continued support is needed based on implementation results.

Eighth: Amendment of Article (5) of the regulations for the National Center for Non-Profit Sector Development, issued by Cabinet Decision No. 618 dated Shawwal 20, 1442 AH, as follows:
1- Delete paragraph (8) of Clause (First), and renumber the paragraphs accordingly.
2- Amend Clause (Third) to read: “The members mentioned in paragraphs (6), (7), (8), and (9) shall be appointed by Cabinet decision for a renewable three-year term.”

Ninth: Delete Clause (Twelfth) of Cabinet Decision No. 618 dated Shawwal 20, 1442 AH.