Dubai Islamic Bank has completed all regulatory formalities to increase its foreign ownership limit by 10 per cent, it said in a statement.
The decision was made following pressure from global investors to create additional room for foreign trade in its shares, according to the bank.
With the MSCI upgrade on the horizon, we expect this move to further enhance DIBs chances of making it to the basket, said Adnan Chilwan, DIBs chief executive.
Up to 27 stocks from Qatar and the UAE could be included in the MSCI emerging markets index, research from Deutsche Bank shows.
MSCI plans to release the final list in its semi-annual index review on 14 May. Qatar and UAE will officially be upgraded from frontier to emerging markets status on 2 June.
Companies in the UAE and Qatar are increasingly seeking higher foreign ownership limits as both countries stock markets gear up for their upgrade.
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. The upgraded stocks are expected to attract around $1bn from foreign funds.