Shares of publicly listed companies in the United Arab Emirates may attract up to $1.9 billion as the government allows full foreign ownership of companies starting from June, according to Arqaam Capital. The telecommunications company Etisalat is expected to be among the biggest beneficiaries, with an anticipated inflow of $1 billion in foreign investor funds for its shares, as stated in a memo by Noman Khalid and Jab Meager.
Additionally, Arqaam Capital predicts that Dubai Islamic Bank will attract $364 million in new foreign funds, Emaar Properties $161 million, Aldar Properties $100 million, and Abu Dhabi Islamic Bank $60 million. Other listed companies on both the Abu Dhabi and Dubai stock exchanges are expected to draw $8 million on average per share.
The increase in the foreign ownership limit in UAE stocks is expected to reflect on the MSCI index in August and the FTSE index in September.
**Abolition of Sponsor System**
According to a statement from the UAE Ministry of Economy on Wednesday, the Commercial Companies Law will come into effect starting June 1, allowing investors and entrepreneurs to establish and fully own companies in various economic activities. The UAE government has recently approved amendments to the Commercial Companies Law, abolishing the requirement that mandates foreign investors and companies wishing to open a branch in the country to have a local agent.
UAE Minister of Economy Abdullah bin Touq Al Mari stated that "the implementation of amendments to the Commercial Companies Law starting in June represents a new step reflecting the importance the UAE government places on supporting the economy across various sectors and enhancing its readiness for the future, especially as the law comes within a comprehensive vision for the country to enhance its status as a global investment hub."
