ABU DHABI
The number of banks allowing foreigners to own part of their shares has amounted to 10 national banks out of 12 listed on the Abu Dhabi Securities Exchange, ADX.
National Bank of Umm Al Qaiwain, NBQ, was the latest to join the list after its board of directors’ decision on Thursday to allow 30 per cent foreign ownership, i.e. 554 million shares out of its total stocks estimated at around 1.48 billion.
Foreign shareholding allowed by the 10 banks ranges between 20 per cent to 49 per cent, which enabled them to further tap international capital markets and attract new investments into their shares as revealed by stock market data over the past period. According to NBQ’s announcement today, the percentage of UAE national ownership of the bank’s shares is a minimum of 70 effective May 25th, with a maximum of 20 per cent for GCC nationals and 10 per cent for other nationalities.
Allowing foreign ownership in a company’s shares listed on the stock market is a prerequisite for them to get incorporated into leading indices, like MSCI, which has recently promoted UAE stock markets’ classification from frontier to emerging market.
A total of 52 companies allowing foreign shareholders are listed on ADX, claiming 76.5 per cent of the market’s 68 companies.
