Stock du telecom
A choice pick for foreign investors? du believes it's numbers will convince them. Image Credit: Ahmed Ramzan/Gulf News

Dubai: The UAE telco du expects foreign investors to come on board in significant numbers now that it has raised its limit to 49 per cent.

The company confirmed the increased ownership limit becomes effective from today (February 23).  Foreign investors currently hold less than 1 per cent - 0.74 per cent - of du's stock, which is listed on DFM.

It believes it has the numbers to convince them – “Last year, Emirates Integrated Telecommunications (EITC) attained a net income of Dh1.44 billion, revenue of Dh11.08 billion, and a 24.1 per cent growth in capital expenditure year-on-year,” du said in a statement.

“The latter was the highest level of capital intensity in the preceding five years, and these emphasize EITC’s profitability and resilience in challenging business environments.”

But no new foreign investor can hold more than 5 per cent of the equity. It was last month that du – as well as Etisalat – raised foreign ownership limit to 49 per cent from 20.

Update on DFM
On Tuesday, Dubai Financial Market's General Index led the upside rally in most of the Gulf markets today. After dropping for five consecutive sessions, the index is finding its way higher to 2573, up 1.20 per cent on the day, according to's Market Analyst Wael Makarem.
"The optimism over the drop in coronavirus cases is playing a good role in reviving investors' appetite."
As for Abu Dhabi Securities Exchange, the Index hovered above 5,670, gaining 0.16 per cent on the day. The index is consolidating in a tight range, near its highest levels since 2005, said Makarem.