The limits on foreign ownership are the topic of the day on local stock markets.
But data from UAE bourses show that few of the companies with a significant percentage of shares available to outsiders are attracting buyers in large numbers.
There are 68 companies with sizeable percentages of their shares open to foreigners. Only 10 of those have sold more than half of their allotted shares to foreigners.
Until yesterday, the company closest to reaching its foreign-ownership limit was First Gulf Bank. The lender officially raised its foreign-ownership limit from 15 per cent to 25 per cent yesterday. The move failed to excite investors; the stock declined 1.1 per cent. Foreign investors own about 14 per cent of the shares.
Insurance House also last week agreed to raise its cap on foreign ownership to 25 per cent, just days after its public listing.
Tight limits on foreign ownership in listed UAE companies were cited by the index compiler MSCI in delaying its decision on whether to upgrade the country to "emerging market" status.
Federal law limits foreign ownership to 49 per cent, but companies have discretion on how much to offer up to that ceiling.
"Foreign ownership limits are a real pain when participation is at those limits," said Daniel Broby, the chief investment officer at Silk Invest, an emerging and frontier-markets fund company in London. Although most limits had not been tested in the past year, he said, they would become an obstacle if the country was upgraded and drew more attention from international investors.
"This may not be the case now, when foreigners are not engaging fully, but may well be the case when UAE gets upgraded to [emerging-market] status," he said. "It will be the stocks most in demand that will ultimately be the main beneficiaries." MSCI said it would revisit the country's classification in December.
On the Abu Dhabi Securities Exchange, 28.2 per cent of RAK Properties' shares are held by foreign investors, while the limit is 49 per cent. Foreign investors hold 12.3 per cent of Sorouh Real Estate, which has a foreign-ownership limit of 15 per cent.
On the Dubai Financial Market, foreign investors hold 35.1 per cent of Aramex, which allows foreign ownership up to the federal limit. Only 9 per cent of Emaar Properties, the biggest developer in the region, is held by foreign investors, although the limit is 49 per cent.
"It is not about opening up the entire market to foreign investors, but to open up limits on the companies that those investors will find interesting," said Mohammed Ali Yasin, the chief investment officer at CAPM Investment in Abu Dhabi.
One prominent example in that category is the telecommunications operator Etisalat, which is closed to foreigners and majority-owned by the Government.
"A key challenge to opening those shares to foreigners is the shareholding structure where the Government owns a majority stake in the companies, which would basically mean that the Government would have to sell down some of their holdings," he said.
As it stands, non-Gulf foreigners make up 3.31 per cent of ownership on UAE markets, with holdings of Dh12.4 billion (US$3.37bn), while UAE nationals hold 91.5 per cent of equities, according to research by Al Ramz Securities.
The remainder is held by other Gulf nationals.
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Mountain%20Boy
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COMPANY%20PROFILE
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Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A
How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
Carol Glynn, founder of Conscious Finance Coaching
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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COMPANY%20PROFILE
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