New company to manage Dubai parking spaces

A new company - named Parkin - has been set up in Dubai to oversee all operations related to parking spaces in the city.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday issued a law to establish the public joint stock company (PJSC) for a 99-year duration that will be renewed for a similar period.

‘Parkin’ will be tasked with creating, planning, designing and operating public and private parking spaces, while holding financial, administrative and legal autonomy to fulfill its responsibilities.

It will also be responsible for issuing permits to individuals.

A franchise agreement will be finalised between the Roads and Transport Authority (RTA) and Parkin for the handover of duties.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, issued a resolution to form the board of directors. It will be chaired by Ahmed Hashem Bahrozyan, while Ahmed Hassan Mahboub will serve as Vice Chairman. Other members of the Board include: Muna Abdulrahman Al Osaimi, Nasser Hamad Abu Shehab, Alawi Ali Al Sheikh, Mona Mohammad Bajman, and Al Anoud Thabit Al Ameri.

The Board will be responsible for the approval of the company's strategic plans and policies, the issuance of financial, administrative, technical, and procurement regulations, the management of its assets, the approval of its organisational structure and the validation of contracts and agreements signed by the company.

All the company’s shares will be fully owned by the Government of Dubai, with the Executive Council of Dubai determining the percentage of shares that may be transferred to third parties through public or private subscription. The company's liability is limited to its paid-up capital, and the responsibility of its shareholders is limited to the nominal value of the shares they own.

The law permits individuals to own shares in the company through public or private subscription. The ownership percentage of the Government of Dubai must not fall below 60 per cent of the company's capital when its shares are offered for subscription.

According to the law, the company’s articles of association will be approved by the Chairman of The Executive Council of Dubai. The Law also defines the areas that should be included in the articles of association.

Furthermore, the law allows the transfer of certain employees from RTA to Parkin PJSC, through a decision issued by the RTA’s Chairman, without compromising their rights.

The law is effective from the date of it issuance and will be published in the Official Gazette.