Dubai-based Deyaar Development is looking to allow 25 per cent of its share capital to be available to foreigners, its board of directors recommended after a meeting on 13 February.

 “Following our company’s very strong 2013 performance, the board’s decision to open share ownership to foreign investors is an important, positive step forward in positioning Deyaar internationally and broadening our ability to raise capital efficiently to continue delivering significant growth and value,” said Saeed al-Qatami, the firm’s CEO.

“The board reviewed the company’s capital structure, strategic plans and needs, and determined that Deyaar is adequately capitalised to meet all future expansion and growth.”

The Dubai Financial Market-listed developer’s share price rose from AED1.23 ($0.34) to AED1.34 at market opening on 16 Febuary.

The higher foreign ownership recommendation will be subject to the approval of the company’s shareholders and regulatory authorities.

Foreign funds are expected to allocate an estimated $1bn when the UAE and Qatar are upgraded to ‘emerging markets’ status in May. That has prompted several companies, including Commercial Bank of Qatar and Qatar Islamic Bank, to seek higher foreign ownership limits.