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Tue 15 Apr 2014 07:40 PM

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Dubai's DIB gets nod to raise foreign ownership limit

Dubai Islamic Bank increases limit by 10% to 25% following completion of all regulatory formalities

Dubai's DIB gets nod to raise foreign ownership limit
Dont use this picture anymore we have a new one on the system.

Dubai Islamic Bank on Tuesday announced that its foreign ownership limit has been increased by an additional 10 percent, following the completion of all regulatory formalities.

The new limit at the bank now stands at 25 percent and will "significantly enhance the liquidity available to foreign investors", a statement said.

DIB added it was consistently under pressure from global investors to create additional room to allow investment by interested parties from across the globe.

"Active engagement with international shareholders has been a key focus for us in the recent past", said Dr Adnan Chilwan, CEO DIB.

"Cognizant of the feedback received, we saw extensive demand for DIB stock from global investors and, though the bank has one of the highest free floats of nearly 60 percent among listed entities, the foreign ownership room available was restricting international buyers."

He added: "The enhanced FOL would allow greater freedom for interested international parties to acquire DIB stock."

The increase is effective from Wednesday, the statement said.

The company's decision is part of a trend by companies in the UAE 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.

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