UAE’s Etisalat to allow foreign share ownership

The government of the United Arab Emirates has lifted a ban on foreign ownership of the country’s biggest telecommunication company, Etisalat.

The telecoms operator said in a filing to the Abu Dhabi Securities Exchange (ADX) that local and foreign institutions, and expatriate individuals can own the stock, provided such ownership does not exceed 20 percent.

The company did not state in the filing when the change would take effect.

Etisalat is 60 percent owned by UAE federal government through the UAE’s Investment Authority, while nationals presently own 40 percent.

 The company said that the UAE Investment Authority has no plans to reduce its ownership percentage for the time being. 

In May 2014, the UAE joined MSCI’s emerging markets index. Although Etisalat is not included by the index provider, it is the second-largest operator in the Gulf behind Saudi Telecom.

The teleco’s shares, which trade on the ADX, rose by 20 percent so far this year.