Etisalat and Du, the two main phone operators in the UAE, may raise foreign ownership in their shares, joining companies listed in Abu Dhabi and Dubai seeking to attract more overseas investment.
The boards of both companies will meet on Wednesday, according to regulatory filings.
Both stocks rose as much as 15 percent shortly after the open in Dubai and Abu Dhabi, the maximum allowed by the exchanges. Etisalat rose to a record high, while Du traded at the highest level since 2016.
While they didn’t give a reason for considering higher foreign ownership, the UAE has accelerated efforts to attract investment into an economy reeling from the coronavirus and a decline in oil prices.
Companies such as Abu Dhabi National Energy Co, First Abu Dhabi Bank and Emirates NBD have raised foreign ownership limits in the recent past.
Etisalat, the UAE’s biggest phone operator, first opened up to foreign ownership in 2015 with a 20 percent limit.
The UAE in November also confirmed changes to its commercial company ownership laws.
It means foreigners of any nationality can now own 100 percent of their business in the country and was the latest move to boost the economy’s competitive edge and make the country more expat-friendly.
The previous rule that onshore companies had to have a major UAE shareholder had been described by one investor as the “number one issue” for foreign companies.
The move is part of plans by the UAE to future proof its economy in the post-coronavirus era.
Dubai has also launched a virtual visa scheme, which allows remote working professionals from all over the world to relocate to Dubai with their families with access to all services in the emirate, including schooling, telecom and services.
In September, the emirate launched a retirement programme for resident expatriates and foreigners over the age of 55.
Retire in Dubai, the first of its kind in the region, is being spearheaded by Dubai Tourism in collaboration with the General Directorate of Residency and Foreigners Affairs.
Dubai has also recently launched the Virtual Company Licence, which allows global businesses to access a regulated e-commerce platform populated by Dubai-based companies, while also exploring new markets and investment opportunities digitally.
The initiative, which allows investors worldwide to do business in Dubai digitally without having to live in the emirate, is expected to attract more than 100,000 companies.
* With Bloomberg
Follow us on
