Dubai Islamic Bank (DIB) has announced the increase of its foreign ownership limit (FOL) to 40 percent, from its previous limit of 25 percent, after receiving approval from the UAE Central Bank and the Securities and Commodities Authority (SCA).
DIB, one of the region’s leading Islamic banks, revealed that the increase in FOL was driven primarily by strong investor demand from large foreign institutional investors and the rising confidence they have in the bank’s growth ambitions.
“The global investor community has shown strong confidence in the UAE financial and capital markets as well as DIB, which has already seen a significant uptick in terms of share price performance, since the start of this year. The increase in FOL to 40 percent will serve as another catalyst at a critical juncture with DIB’s alignment to the fast recovering economic environment,” said Dr. Adnan Chilwan, group CEO of DIB.
Adnan Chilwan, group CEO of DIB.
DIB joins several other banks in the UAE that have recently raised the ceiling on their foreign ownership limits to attract more external investors, gearing towards benefitting from the re-opening of the Dubai economy post the global pandemic.
“As the UAE commemorates a remarkable year, with major economic events such as the Expo 2020 and its golden jubilee, DIB remains steadfast in its commitments to supporting these economic ambitions whilst continuing to position itself as a leading financial hub in the region and the world.”
The shareholding limit increase will raise DIB’s weightage in the FTSE and MSCI global market indices.
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