We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 31 Dec 2008 12:29 AM

Font Size

- Aa +

UAE's First Gulf Bank caps foreign ownership at 15%

Move to reduce limit from 30% follows a more than 50% decline in bank's share price.

Abu Dhabi's First Gulf Bank said on Tuesday it has halved its foreign share ownership limit to 15 percent to curb speculation which it blamed for a sharp decline in its stock price.

"In the last few months, FGB's shares have been irrationally traded in the market, resulting in share price decline by more than 50 percent," FGB Chairman Sheikh Hazza bin Zayed Al-Nahyan said in a statement.

"The decrease in the share price was in majority attributed to short term foreign speculators who took advantage of markets nervousness," he said.

A board meeting agreed on Sunday to cap foreign ownership at 15 percent of the bank's capital, down from 30 percent, the statement said. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.