Shareholders approved Dubai-based Deyaar Development’s proposal to raise its foreign ownership limit to 25 per cent of the share capital on 3 April.

“With the UAE joining the MSCI Emerging Markets Index, it is expected that many global investors and institutions will adjust their emerging market allocations to the country,” says Saeed al-Qatami, the firm’s CEO. “We are confident, once implemented, the investor allocation will have a positive impact on the overall trading of the company’s shares.”

Foreign funds are expected to allocate an estimated $1bn when the UAE and Qatar are upgraded by US index compiler MSCI to emerging markets status in May. That has prompted several companies, including Commercial Bank of Qatar and Qatar Islamic Bank (QIB), to seek higher foreign ownership limits.

Deyaar’s increase will be subject to the approval of regulatory authorities.