KUWAIT CITY, Nov 29: Mariam Al-Awad, head of the Union of Consumer Cooperative Societies, highlighted Saturday the critical role of cooperatives in Kuwait’s economy, describing them as the “backbone of the national economy” with annual sales surpassing one billion dinars, reflecting the sector’s scale and dynamism.

In a press statement, Al-Awad noted that a single cooperative society recorded sales of 30 million dinars by the end of the fiscal year, underscoring the sector’s substantial economic and social contribution and the continued expansion of cooperatives nationwide.

She said the Union had launched a tender for the supply of goods bearing the “Cooperative” logo, initially open for 10 days. Due to limited participation, with only 9 to 10 companies submitting bids, the deadline was extended to December 11, ahead of the fiscal year-end on December 31, 2025. Bids previously submitted were not opened before the original deadline, she clarified.

Currently, Cooperative-branded goods include six main product categories, such as paper products, detergents, and aluminum foil, with laundry detergent powder added due to consumer demand. The flagship “Cooperative Tissues” has been available for 50 years, and new products are introduced as needed, maintaining affordability and high quality.

Al-Awad emphasized that Cooperative goods are available to all visitors of the central market, not limited to Kuwaiti consumers, but are not sold in unauthorized parallel markets. Contracts with suppliers prohibit resale outside cooperative societies or export abroad. Prices are set by the Union’s Pricing and Inspection Department through cost analysis, transportation evaluation, product comparisons, negotiations, and controlled profit margins.

She said the Union prioritizes national production, sourcing first from Kuwait and then from Gulf Cooperation Council countries, with 90% of Cooperative goods currently produced locally. Al-Awad stressed that the Union’s primary goals are coordination, oversight, and awareness, not profit. Legislators capped profit margins at 12%, with net proceeds directed toward social services, public facility improvements, landscaping, Umrah trips, and national events.

Inspection teams have been deployed across cooperative societies to ensure compliance with the Union’s circular. Price discrepancies occur when societies allow products outside the Union framework; in such cases, remediation reports are issued and, if unresolved, escalated to the Minister of Social Affairs through the Control and Inspection Department.

Al-Awad added that cooperative boards can contract companies to develop electronic applications for marketing and delivery services, with the Union aiming for a unified platform covering around 75 societies. She noted that achieving this requires a world-class provider due to variations in current systems and digital activity levels.

She also outlined plans for an electronic version of the “Cooperation” magazine alongside the print edition, as well as content development through member interviews to better understand their needs, preferences, and suggestions—a continuation of the Union’s approach of gathering shareholder feedback via social media and direct engagement.