Dubai has unveiled a groundbreaking initiative with the establishment of ‘Parkin,’ a public joint stock company (PJSC) poised to transform the landscape of public and private parking management. Endorsed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, this strategic move signifies a major leap towards enhancing the efficiency of parking services in the city.
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With financial, administrative, and legal autonomy, Parkin PJSC is slated to operate for an initial 99-year term, subject to renewal, as outlined in the visionary law issued by Sheikh Mohammed bin Rashid Al Maktoum.
parking management: Elevated Responsibilities
The scope of Parkin PJSC’s responsibilities is comprehensive, covering the creation, planning, design, operation, and management of both public and private parking spaces. Notably, the company will issue permits to individuals, enabling them to subscribe to public parking, utilize and operate spaces, and reserve specific areas. In addition to public spaces, Parkin PJSC will play a crucial role in establishing and managing private parking spaces, with potential investments in related business activities.
To streamline its operations, the Roads and Transport Authority (RTA) is tasked with delegating certain or all parking-related responsibilities through a franchise agreement with Parkin PJSC.
Ownership Structure and Shares
The capital structure of Parkin PJSC will be determined according to its articles of association. All shares of the company are currently held by the Government of Dubai, establishing a robust foundation for its operations. The law allows individuals to own shares through public or private subscription, with the condition that the Government of Dubai maintains at least a 60 percent ownership stake during public subscriptions.
Additionally, the liability of the company is confined to its paid-up capital, ensuring financial stability. Shareholders are accountable only up to the nominal value of their shares.
Smooth Transition of Employees and Board Formation
To facilitate a seamless transition, the law permits the transfer of specific employees from the RTA to Parkin, safeguarding their rights during this process. Concurrently, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, has issued a resolution forming the board of directors of Parkin PJSC.
The board, led by Chairman Ahmed Hashem Bahrozyan and Vice-Chairman Ahmed Hassan Mahboub, will play a crucial role in approving strategic plans, policies, financial and administrative regulations, organizational structures, and validating contracts and agreements.
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This groundbreaking initiative underscores Dubai’s commitment to innovative urban management, promising a more organized, efficient, and user-friendly parking experience for both residents and visitors. Parkin PJSC is positioned to redefine the city’s parking landscape, setting new benchmarks for smart city development.
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