Introduction
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Prime Minister of the UAE, issued an important law in Dubai in 2023, known as the “Parkn” Company Establishment Law. This law represents a significant step towards developing and improving the vehicle parking systems and services in the Emirate of Dubai. In this article, we will examine this law, understand its objectives, and highlight its key details.
Establishment of "Parkn" Company
His Highness Sheikh Mohammed bin Rashid Al Maktoum issued the “Parkn” Company Establishment Law No. (30) of 2023, which establishes the company as a public joint-stock company. This grants the company legal personality and financial and administrative independence, allowing it to conduct its activities and achieve its purposes in accordance with the laws and regulations in force in the Emirate of Dubai.
Company Duration: The law specifies that the company’s duration is 99 years, starting from the date of its registration in the commercial register and automatically renewing for a similar period according to the company’s articles of association.
Company Purposes: The company’s purposes include managing, designing, and developing public and private parking facilities, as well as implementing the relevant regulations. The company also enables individuals to participate in, utilize, reserve, operate, manage, and execute contracts related to public parking facilities.
Board of Directors
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued a decision to form the board of directors for the “Parkn” Company, with Ahmed Hashem Bahrozian as the chairman and other members. This board is responsible for adopting the company’s financial, administrative, technical, and procurement policies, managing its assets, and approving the contracts and agreements entered into by the company.
Delegation of Rights and Obligations
According to the law, the Roads and Transport Authority in Dubai will delegate some of its responsibilities related to public and private parking facilities and relevant permits to the “Parkn” Company. This means that the company will be responsible for managing and operating vehicle parking facilities in the Emirate of Dubai.
Company Capital
The company’s capital is determined according to its articles of association. All shares of the company are fully owned by the Government of Dubai, but a portion of them can be transferred to third parties if approved by the executive council.
Company Powers to Achieve Its Objectives
The law grants “Parkn” Company extensive powers to achieve its objectives, including contracting with third parties, establishing subsidiary or wholly-owned companies, owning the necessary assets, properties, and equipment, and investing its funds in various areas.
Articles of Association
Adopting the articles of association of “Parkn” Company by the Chairman of the Executive Council of Dubai is essential for regulating the company’s operations and addressing matters such as capital increase, profit distribution, and others.
Human Resources
The law allows “Parkn” Company the right to transfer some employees from the Roads and Transport Authority in Dubai to the company while preserving their acquired rights.
Cooperation with the Company
The law requires all government entities to fully cooperate with the company to enable it to achieve its objectives and exercise its powers.
Expert Opinions
Ahmed Saber – Head of Litigation Department: I believe that the establishment of “Parkn” Company is a positive step towards regulating and improving vehicle parking services in the Emirate of Dubai. By providing legal personality and financial independence to the company, the law enables it to efficiently achieve its goals and develop this sector. Also, delegating some responsibilities of the Roads and Transport Authority to the company will contribute to improving the efficiency and quality of parking services. It is a proactive step that reflects the government’s commitment to infrastructure development and enhancing the quality of life for citizens and residents.
Nada Al Mawawi – Head of Consultation Department: The establishment of “Parkn” Company represents a significant development in regulating the field of vehicle parking in Dubai. Creating a dedicated company in this manner allows for effective and sustainable management and services in the parking sector. Additionally, the law promotes collaboration between the government and private sectors, enabling them to achieve their goals more efficiently. This development reflects the vision of the Dubai government to enhance quality and comfort in the lives of its citizens and residents, and it constitutes a positive step towards achieving these objectives.
Conclusion
The “Parkn” Company Establishment Law is a significant step towards the development and improvement of vehicle parking services in the Emirate of Dubai. It provides the necessary legal framework for the company to achieve its objectives and enhance this sector further. This law reflects the commitment of the Dubai government to infrastructure improvement and the provision of high-quality services to its citizens and visitors