Chairman says move made to allow greater international participation following MSCI index inclusion
Dubai Investments raises foreign ownership cap to 49 per cent from 35 per cent
Dubai Investments, the Dubai-based investment holding company, said that it had raised its foreign ownership limit to 49 per cent from 35 per cent to allow more international investors to buy shares in the company after it was included in the MSCI Emerging Market index, the benchmark gauge of publicly traded companies in the developed world.
“The proposal to raise the cap to 49 per cent of the capital was aimed at encouraging share ownership to more foreign investors,” said Sohail Faris Ghanim Al Mazrui, Chairman of Board of Directors of Dubai Investments.
“The company feels that there is an appetite among foreign investors to invest – which is restricted by keeping the cap at 35 per cent.”
The company, which is listed on the Dubai Financial Market, said that its increase of the foreign ownership limit in line with Federal Law No. 2 of 2015 relating to commercial companies. The cap on the foreign ownership of the company was 20 per cent when it listed on the DFM in 200 until 2014 when it was increased to 35 per cent.