Co-Op Society



Co-Op Societies (جمعية تعاونية jamʕīya taʕāwunīya), often shortened to Co-Op, refer to public organizations that are set up in each area of Kuwait and to provide services to its residents. These services mainly manifest in setting up grocery and convenience stores in each area, but Co-Op societies also often include a variety of different stores, both operated by the Co-Op and rented to private entities. There are around 60 Co-Ops in operation today, making up around 60–70% of retail trade in Kuwait.

The residents of each area elect the board of their Co-Op on a yearly basis. Citizens in each area can become contributing members with voting power and receive a percentage of their purchases back annually. Some Co-Ops play a vital role in their community beside their commercial activity. For example, Co-Ops often provide support and/or donations to different local events and institutions such as schools. During the Iraqi invasion in 1990, Co-Ops played a major role in providing food and medicine, as well as support for residents and resistance groups.

Comprising 70% of the retail trade in Kuwait, the legal basis for consumer cooperatives was established in 1962 with law No. 20. By the start of the 1980s, Kuwait's cooperative movement became open to Arab and international cooperative movements, and the Kuwaiti Union for Cooperative Societies sought membership in the International Cooperative Alliance as of March 1981. All the cooperative society come under the Union of Consumer Cooperative Societies.

There have been some attempts to privatize some of the Co-Ops. However, the response to such a move has generally been critical.

Some Co-Ops face issues of corruption, negligence, and/or mishandling. The grocery department of Dasma and Bnēd il-Gār Co-Op, for example, was replaced by a private grocery store following litigation and corruption allegations. The government dissolved the boards of Jābrīya Co-Op and Fahad il-Aḥmad Co-Op over "grave financial and administrative errors", though in Jabriya's case, the board was reinstated following a court order.