Proposal to Establish a Cooperative Societies Joint-Stock Company

The Minister of Social Affairs and Children, Dr. Amthal Al-Huwaila, held an open meeting with the Federation of Cooperative Societies and the chairpersons of the boards of cooperative societies, during which they discussed several issues related to the interests of Kuwait and the members of the societies. The meeting addressed the importance of protecting shareholders’ funds, and the Minister emphasized that shareholders’ funds are a red line, noting that the Ministry is in the process of drafting a new law for cooperatives. Accordingly, the Minister presented several proposals aimed at improving the performance of cooperative societies in Kuwait.During my regular visits to cooperative societies, I have noticed traffic congestion caused by vehicles unloading goods and products for the societies, which leads to delays in the arrival of some products and shortages at certain times. It also reduces the guarantee of regular product availability and the provision of freshly produced goods, which is one of the key areas citizens wish to see improved.Kuwait has approximately 70 cooperative societies that account for nearly 75% of the retail trade, in addition to 400–500 other branches affiliated with them. Sales of the cooperative societies reached approximately 1.3 billion Kuwaiti dinars in 2024. However, the operational efficiency of the societies does not match that of private companies, due to management style and frequent changes in boards of directors, as well as the appointment of staff, some of whom are unqualified to manage modern operations.In comparison with other companies, such as the American company Walmart, which has 2,023 branches in several countries and sales of $635 billion, and Safeway in the United States, founded in 1915, which operates in the same cooperative sector, we find that it operates 904 branches and generates sales of $36.3 billion. It would also aim to provide a unified management system that helps streamline operations and improve coordination among the cooperatives. By forming a single board of directors for this company, administrative oversight would be strengthened, reducing complexities and increasing operational efficiency.In addition, I recommend establishing central warehouses for the proposed company, where all products from food merchants are supplied to these warehouses for direct distribution to the cooperative societies according to a specific system that classifies products into three categories: regular items, refrigerated items, and frozen items. This system will help alleviate traffic congestion, thereby reducing storage costs and improving overall operational efficiency.\n\nIt is also important to conduct a comprehensive economic study on the establishment of this company and to review the regulations governing its operations. It is necessary to allocate a percentage of each cooperative’s sales to support charitable causes and contribute to the improvement and beautification of the areas surrounding the cooperatives.Based on these observations and potential benefits, I recommend that the Honorable Minister, Dr. Amthal Al-Huwaila, carefully study these proposals to enhance the performance of cooperative societies for the benefit of our citizens and our beloved country.