6.37 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Rakbank lifts foreign ownership

Published
By Staff

Ras Al Khaimah-based and Abu Dhabi-listed Rakbank announces in a media statement today that it has received ministerial approval to lift its foreign ownership level to 40 per cent following the decision taken by its shareholders at the extraordinary general meeting last month.

Rakbank noted that the new limit has already been adjusted by Abu Dhabi Securities Exchange (ADX) since last Thursday (June 5).

Peter England, Rakbank’s CEO, said that the bank had been running close to the old 20 per cent limit for some months now. He said foreign interest had picked up strongly as a result of the UAE’s inclusion in the MSCI Emerging markets index as well as the bank’s active engagement with foreign investors in recent months.

“We most probably would have seen foreign trades being rejected in the near future had the limit not been increased,” said England.

A number of other UAE companies including Dubai Investments, Deyaar, Union Properties and Mashreq have recently announced lifting of foreign ownership ceiling after the MSCI’s reclassification of the UAE as an emerging market came into force last month.

According to global consultancy AT Kearney, the UAE’s ranking has improved among the world’s top countries for foreign direct investment (FDI), becoming 11th most attractive destination for FDI in 2014 mainly due to local firms increasing their foreign ownership quotas of late.

The UAE was the only country from the Middle East and Africa to be ranked globally among the top 25 countries. It was ranked 14th in the world for most attractive for FDI in 2013.