Deyaar Development PJSC , the leading Dubai-based developer listed with the Dubai Financial Market, today announced its board of directors has recommended allocating 49 per cent of its share capital, open to non-UAE nationals, to GCC and foreign investors, provided that the share of capital owned by foreigners should not exceed 25 per cent. The board also resolved that the company’s share capital is sufficient as currently structured.
The share ownership recommendation will be subject to the approval of the company’s shareholders in the Extraordinary General Meeting, the date to be confirmed, and the relevant regulatory authorities.
With the UAE joining the MSCI Emerging Markets Index, it is expected that many global investors and institutions will adjust their emerging market allocations to the UAE. The move has been forecast to attract AED1 billion of new capital into listed companies. Opening their shares to foreign ownership would be in line with Deyaar’s expansion strategy.
Saeed Al Qatami, Chief Executive Officer, said, “Following our company’s very strong 2013 performance, the board’s decision to open share ownership to foreign investors is an important, positive step forward in positioning Deyaar internationally and broadening our ability to raise capital efficiently to continue delivering significant growth and value.”
Commenting on the company’s capital restructuring, Al Qatami concluded: “The board reviewed the company’s capital structure, strategic plans and needs, and determined that Deyaar is adequately capitalised to meet all future expansion and growth.”