Dubai property developer Deyaar said on Sunday that it planned to allow foreigners to begin investing in its shares and hold up to 25 per cent of its share capital.
At present, nationals from Gulf Cooperation Council countries can own up to 49 per cent of Deyaar’s shares; they currently hold 3.7 per cent, bourse data shows. Foreigners from outside the GCC have been prohibited.
The Deyaar board’s recommendation will be subject to approval by the company’s shareholders in an extraordinary general meeting to be held soon. Shares in the company jumped 9.8 per cent on Sunday morning after the plan was announced.
The move 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.
Union Properties, another Dubai property firm, is also seeking to increase its foreign ownership limit.
Deyaar’s board also resolved that the company’s share capital is sufficient to meet future expansion and growth, the company said.