Union Properties plans to raise foreign ownership limit

06 May 2014

Three regional companies have already raised their foreign ownership limits ahead of MSCI upgrade

Dubai’s Union Properties is planning to raise its foreign ownership limit to 25 per cent.

Shareholders of the Dubai Financial Market-listed company approved the proposal during an extraordinary general meeting on 5 May, a regulatory filing shows.

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, Dubai-based Deyaar Development and Mashreq Bank have already raised the amount of shares foreigners can hold.

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