By Andy Sambidge
Developer's board also says company is adequately capitalised to meet future expansion plans
Dubai developer Deyaar has announced that it has increased the percentage of shares which foreign investors are allowed to hold in the company.
Deyaar Development said its board of directors has recommended allocating 49 percent of its share capital to non-UAE nationals, including GCC and foreign investors, provided that the share of capital owned by foreigners should not exceed 25 percent.
The move is part of a wider trend by companies in the UAE and Qatar to review their often-low foreign ownership caps ahead of their admittance into the MSCI Emerging Markets Index in May.
Deyaar said in a statement that the share ownership recommendation will be subject to the approval of the company's shareholders at an extraordinary general meeting, the date to which still has to be confirmed.
Saeed Al Qatami, Deyaar CEO, said: "Following our company's very strong 2013 performance, the board's decision to open share ownership to foreign investors is an important, positive step forward in positioning Deyaar internationally and broadening our ability to raise capital efficiently to continue delivering significant growth and value."
He added that the board had reviewed the company's capital structure, strategic plans and needs, and determined that Deyaar was "adequately capitalised to meet all future expansion and growth".