Wednesday 31 October 2018

UAE banks require minimum 60 per cent national shareholding | GulfNews.com

UAE banks require minimum 60 per cent national shareholding | GulfNews.com:

The new Federal Law (Law No. 14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities requires a minimum of 60 per cent UAE ownership for local banks licenced to operate in the country.

Article 74 of the law requires all UAE banks to be formed as public joint-stock companies. However, branches of foreign banks operating in the country are exempt from this requirement.

Other financial institutions are free to be formed as joint-stock companies or limited-liability companies, in accordance with the rules and conditions issued by the central bank’s board. Exchange houses and monetary intermediaries are allowed under sole proprietorship, or take any other legal form in accordance with the rules and conditions issued by the central bank’s board of directors.

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