Dubai-based Deyaar Development has received approval to raise its foreign ownership limit to 25 per cent of share capital, according to a statement on the Dubai Financial Market.

The decision is effective from 21 April.

Companies in the UAE and Qatar are increasingly seeking higher foreign ownership limits as both countries’ stock markets gear up for their MSCI upgrade to emerging markets status on 2 June.

The index compiler sets out a minimum requirement of shares open for foreign trade, forcing companies to individually raise their levels if they want to be eligible for inclusion on the emerging markets index.

Companies seeking higher foreign ownership limits include Dubai Investments, Dubai Islamic Bank, Doha-based Al-Khaliji Islamic Bank and Qatar Islamic Bank. Commercial Bank of Qatar and Dubai-based Mashreq Bank have already raised the amount of shares foreigners can hold.