The Dubai Islamic Bank is to increase the limit it places on foreign ownership from 15 to 25 per cent, following approvals from its board of directors.

The decision is a result of high demand for the bank’s shares from foreign institutional investors, the bank says.

The demand was partly driven by the upgrade given by US finance analysts MSCI, which will come into force in 2014 and lifts the UAE from frontier to emerging market status.

This has opened up opportunities for global investors to include shares in UAE-based banks, such as Dubai Islamic Bank, within their emerging market allocations.