Traders at the Dubai Financial Market (DFM)
Traders at the Dubai Financial Market (DFM). Image Credit: Virendra Saklani/Gulf News

Dubai: Emirates NBD’s share prices jumped over 6 per cent in the first two hours of trade on Tuesday, a day after the bank said it will raise foreign ownership limits to 20 per cent from 5 per cent.

Emirates NBD, Dubai’s biggest bank, saw its share prices rise to Dh13.95, taking the Dubai’s bourse’s main index 1 per cent higher. The Dubai Financial Market (DFM) index was at 2,913.96 at noon, up 0.84 per cent.

Most of the trade values in the bourse were concentrated on Emirates NBD, which accounted for about 78 per cent of the Dh290.8 million that were in the market by noon.

The rise came after Emirates NBD on Monday said it has implemented an immediate hike in foreign ownership limits, and that it plans to raise that further to 40 per cent upon receiving approvals to do so. The bank’s share prices surged by 15 per cent on Monday, taking the DFM index nearly 5 per cent higher.

In mid-July First Abu Dhabi Bank proposed a hike in its foreign ownership limits after the UAE government announced it will permit 100 per cent foreign ownership in certain economic sectors. Banking, however, was not one of the sectors named by the government for 100 per cent foreign ownership, and it is still unclear the level to which FAB will raise ownership limits.