Emirates NBD, Dubai’s biggest bank witnessed a gush in its share prices this morning following the announcement of its proposal to expand foreign ownership belt to 40% with which the share prices of NBD PJSC leaped over by 15 % now at 13.15 Dirhams. This comes after the United Arab Emirates has softened rules to engage foreign investors.
The bank will also bring into immediate effect increased share prices of a total 15% which also is the maximum growth in share prices permitted on the Dubai bourse.
According to stock exchange figures, Foreign ownership currently stands at 5% shares of Emirates NBD percent which will become 20 with the current surge in rates and 55.76% of Dubai’s government. The shares have witnessed a historic 29% rise this year in comparison to 9% rise in standard Dubai index.
According to a statement by the Chairman of NBD, Sheikh Ahmed Bin Saeed Al Maktoum, “ This rise in foreign ownership limit will give UAE’s position a strong escalation as one of the most engaging economies for Foreign Direct Investment and bring significant contribution towards rising liquidity and depth in Capital markets of UAE.”
Emirates NBD also clarified that it has attained all required regulatory approvals and the surge has already been brought to effect. With this news, Dubai Bourses main index also witnessed a 3.5% increase at 2,854 within the opening half hour of trade.
It is believed that First Abu Dhabi Bank had also presented a similar proposalof hike in its foreign ownership limit in Mid July following the announcement of the UAE government of 100% foreign ownership in selected economic sectors.