Abu Dhabi Islamic Bank to discuss raising foreign ownership limits
Foreign ownership limits were last increased in November 2018 to 25%
Dubai: Abu Dhabi Islamic Bank (ADIB) joined the likes of Emirates NBD and First Abu Dhabi Bank (FAB) in looking at increasing foreign ownership limits on stocks.
ADIB said in a statement that its board of directors will meet on Sunday to discuss raising the foreign ownership limits, which currently stand at 25 per cent. The bank in November 2018 raised limits to the current 25 per cent.
It didn’t mention how far it may increase the limit to. An increase in limits would allow foreigners greater access to ADIB’s shares, and usually results in increased fund flows into a stock.
The move comes after Emirates NBD, the largest bank in Dubai, in September raised its foreign ownership limit to 20 per cent from 5 per cent. It said it plans to increase that further to 40 per cent in the future.
Earlier, FAB said it plans to increase its limits to 40 per cent from 25 per cent, with analysts saying such a move could help improve investment appetite.