Dubai announces new company to manage public, private parking spaces

Named 'Parkin', the firm will be responsible for issuing relevant permits to individuals

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by

Sahim Salim

Published: Wed 3 Jan 2024, 1:29 PM

Last updated: Thu 4 Jan 2024, 12:20 AM

A new company set up in Dubai will oversee operations related to parking spaces. The public joint stock company (PJSC) called ‘Parkin’ will have financial, administrative and legal autonomy to fulfil its responsibilities. The company's duration is set at 99 years, which will be renewed for a similar period.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued the law to establish Parkin.

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Company responsibilities

Parkin PJSC is tasked with creating, planning, designing, operating and managing public parking spaces. It is also responsible for issuing permits to individuals, enabling them to subscribe to public parking, utilise and operate it, and to reserve parking spaces. The company will establish, design and manage private parking spaces, in addition to investing in related business activities.

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The law mandates the Roads and Transport Authority (RTA) to delegate certain or all of its responsibilities related to public and private parking, as well as the issuance of relevant permits. This handover of duties will be facilitated by a franchise agreement to be finalised between the RTA and Parkin PJSC.

Company shares, ownership

The company’s issued and paid-up capital will be determined in accordance with its articles of association. All the company’s shares are fully owned by the Government of Dubai. The Executive Council of Dubai has the authority to determine 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, while 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.

Transfer of employees

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

Meanwhile, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, issued a resolution, forming the board of directors of Parkin.

The board will be chaired by Ahmed Hashem Bahrozyan, while Ahmed Hassan Mahboub will serve as vice-chairman.

The resolution defines the authority and responsibilities of the board, among which are the approval of the company's strategic plans and policies; the issuance of financial, administrative, technical, and procurement regulations for the company; the management of its assets; the approval of its organisational structure; and the validation of contracts and agreements signed by the company.

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Sahim Salim

Published: Wed 3 Jan 2024, 1:29 PM

Last updated: Thu 4 Jan 2024, 12:20 AM

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