Reuters – Shareholders of Dubai property developer Deyaar have approved a plan to allocate 25% of its share capital to foreigners, the company said on Saturday.
At present, investors in Gulf Cooperation Council countries can own up to 49% of Deyaar’s shares; they currently hold 3.7%, bourse data shows, while those from outside the GCC have not been allowed to own any stake.
The company said the shareholders approved the allocation at a meeting on Thursday. Its share price jumped 11.8% as its shareholders met to vote on the recommendation made by the company’s board in February.
“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 UAE,” Deyaar CEO Saeed Al Qatami said, commenting on the meeting.
“We are confident, once implemented, the investor allocation will have a positive impact on the overall trading of the company’s shares.”
The company’s decision is part of a trend by companies in the United Arab Emirates and Qatar to review their foreign ownership caps before international index compiler MSCI raises those countries to emerging market status in May, which is expected to attract fresh foreign money.