gulfnews : UAE markets hope firms' foreign ownership limits will be raised

Listed companies in the UAE may soon be allowed to raise foreign ownership limits beyond 49 per cent as the country's flagging equities scene received a timely boost ahead of next week's MSCI classification review.

The draft Companies Law allows the UAE Cabinet to issue a resolution specifying the types of businesses and sectors in which a foreign partner may hold more than 49 per cent of a company's capital, the UAE Ministry of Economy said in a statement.

Foreign ownership is one of the key obstacles facing the UAE as it seeks an upgrade to emerging market status. Morgan Stanley Capital International (MSCI) will reveal on December 14 whether the UAE has been successful in its bid, which would likely give local bourses a much needed injection of liquidity. However, analysts have warned that the new law might not have much of an immediate impact.

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