In quality of Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emiratesissued Law No. (30) of 2023 establishing the company ‘Parkin’, a public joint stock company (PJSC) that will oversee operations related to parking spaces in Dubai.
According to the Law, the newly created company will have financial, administrative and legal autonomy to fulfill its responsibilities. The duration of the company is set at 99 years, counted from the date of its registration, and will be renewed for a similar period.
The Law establishes that Parkin PJSC will have the task of creating, planning, designing, exploiting and managing public parking spaces in accordance with the legislation that regulates them.
Parkin PJSC It is also responsible for issuing permits to individuals, allowing them to subscribe to, use and operate public parking, and reserve parking spaces in accordance with the terms of the franchise agreement.
Additionally, the company is tasked with creating, designing and managing private parking spaces, as well as investing in related commercial activities, among other responsibilities.
Meanwhile, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubaiissued Executive Council Resolution No. (121) of 2023, by which the Board of Directors of Parkin PJSC was established.
The Board will be chaired by Ahmed Hashem Bahrozyan, while Ahmed Hassan Mahboub will act as vice-chairman. Other members of the Board are: Muna Abdulrahman Al Osaimi, Nasser Hamad Abu Shehab, Alawi Ali Al Sheikh, Mona Mohammad Bajman and Al Anoud Thabit Al Ameri. The Resolution comes into force from the date of its issuance and will be published in the Official Gazette.
The Resolution defines the powers and responsibilities of the Board of Directors, among which are the approval of the company’s strategic plans and policies, the issuance of financial, administrative, technical and procurement regulations of the company, the management of its assets , the approval of its organizational structure and the validation of the contracts and agreements signed by the company.
Law No. (30) of 2023 orders the RTA delegate some or all of its responsibilities related to public and private parking, as well as the issuance of relevant permits as described in Executive Council Resolution No. (5) of 2016 and existing regulations in the emirate. This transfer of functions will be facilitated by a franchise agreement that will be closed between RTA and Parkin PJSC.
The issued and paid-up capital of the company will be determined in accordance with its statutes. All shares of the company are the exclusive property of the Government of Dubai. The Dubai Executive Council has the authority to determine the percentage of shares that can be transferred to third parties through public or private subscription.
The liability of the company is limited to its paid-up capital and the liability of its shareholders is limited to the nominal value of the shares they hold. The Law allows natural persons to own company shares through public or private subscription. The ownership percentage of the Government of Dubai must not be less than 60% of the company’s capital when its shares are offered for subscription.
According to the law, the company’s statutes will be approved by the chairman of the Dubai Executive Council. The Law also defines the areas that must be included in the statutes.
In addition, the Law allows the transfer of certain employees of RTA to Parkin PJSCby decision issued by the President of the RTA, without compromising their rights.
The Law nullifies any other legislation that contradicts it. The Law comes into force from the date of its issuance and will be published in the Official Gazette.
News source: Emirates News Agency