Mashreq hikes foreign ownership limit to 49%

Companies and banks in the UAE and Qatar are reviewing their foreign ownership caps ahead of a planned upgrade by international index compiler MSCI to emerging market status for these countries in May, which is expected to attract fresh foreign money.

On Sunday, property developer Deyaar said it would allow foreign investors to own shares for the first time, up to a limit of 25 per cent, subject to shareholder approval.

“We’ve tested the market and have seen a great appetite from foreign investors for the bank’s shares. This [increase in the cap] is effective immediately,” Abdul Aziz Al Ghurair told Reuters by phone. “As a result, we expect the share price to improve. It’s a natural development for a bank like Mashreq to go global.”

Mashreq had in September last year raised the foreign ownership limit to 20 per cent.