The Board of Directors’ proposal is subject to the supervision of regulatory authorities and would require amendments to the current laws and policies.
Thursday 18, July 2019 BY KUDAKWASHE MUZORIWA
First Abu Dhabi Bank’s (FAB) Board of Directors has proposed removing a limit on the foreign ownership limit in its sharers after the UAE started loosening rules to attract international investors.
In a statement, FAB said that as part of efforts to support the UAE in attracting capital, foreign investments and in promoting economic growth, the board has proposed to remove foreign ownership limit cap with the potential that other public companies in the UAE may apply similar measures.
Earlier this month, the UAE announced that it will allow foreigners to own 100 per cent of businesses across industries and the federal government will leave it to individual emirates to decide the ownership percentage in each activity according to their circumstances.
Similarly, Saudi Arabia’s Capital Markets Authority (CMA) removed a cap on ownership of publicly traded companies for foreign strategic investors last month, paving the way for international investors to take controlling stakes in sectors from banking to petrochemicals.
The UAE currently caps foreign ownership of businesses at 49 per cent, except in economic free zones.