They affirmed that it supports the promotion of markets from "emerging" to "advanced".
Experts: Increasing the percentage of foreign ownership in "Etisalat" and "Du" increases foreign investment in the financial markets
The board of directors of Etisalat and du have agreed to raise the ownership of its shares by non-citizens to 49%, whether it is a natural or legal person.
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Economists said that raising the percentage of foreign ownership in "Etisalat" and "Du" would lead to an increase in foreign investment in the country in general and in the financial markets in particular, noting that the money markets are expected to succeed in gaining foreign investments in the coming period.
They explained to "Emirates Today" that raising the percentage of foreign ownership in the two telecom companies raises their credit rating and raises the value of their shares, while this step contributes to achieving the requirements of promoting the UAE markets from emerging markets to developed markets.
Foreign investment
In detail, the economic expert, Ali Al-Hammoudi, said that "raising the percentage of non-citizens' ownership of shares in (Etisalat) and (Du), will lead to an increase in foreign investment in the country in general and not only in the two telecommunications companies," explaining that the foreign investor increases his investments in countries that do not It follows protective measures, and it has sovereign decisions, like the UAE, to open its economies to foreign investors, knowing that in the event of any dispute, fair laws will be used that are equal between all parties.
He added that raising the percentage of foreign ownership in “Etisalat” and “Du” raises their credit rating, and gives their shares strength, raises their value and protects them from fluctuations, noting that foreign investors are known to follow medium and long-term investment policies, not short-term ones that depend on speculation. .
The percentage of ownership
For his part, General Manager of the "Truth" Economic Consulting Company, Reda Muslim, said that “the decision to raise the foreign ownership rate to 49% in (Etisalat) and (Du) will lead to an expansion of the investor base and an increase in foreign investments in the capital market as a whole, as well as Raise the value of shares traded in general during the coming period ».
Muslim expected that the UAE financial markets would succeed in gaining huge foreign investments, estimated at billions of dollars during the coming period, with the support of the decisions to raise foreign ownership rates, indicating that attracting foreign investment has become one of the most important goals of the UAE during the next stage, and all the necessary decisions are being taken to achieve This goal.
He noted that raising the percentage of foreign ownership in the telecommunications sector is a major step on the road to upgrading the UAE financial markets from "emerging" to "advanced."
The economic expert, Muhammad Al-Rifai, agreed with him that raising the percentage of non-citizens' ownership in the shares of the telecommunications sector will have an impact on increasing foreign investment in the capital market as a whole during the coming period, expecting the market to attract huge investments during the coming period, coinciding with the expansion of the investor base and the increase The market value of shares and trades in the market.
In the same context, the financial expert, Waddah Al-Taha, said that “the impact that the money market is currently witnessing is primarily a psychological one, especially since the actual percentage of foreign ownership in (Etisalat) did not reach the previous maximum, reaching 2% of the 20% rate. Previously permitted, while the percentage in (Du) is 0.2%.
Al-Taha noted that raising the percentage of foreign ownership is a positive step that contributes to achieving the requirements of promoting the UAE markets to developed markets, pointing out that the decision to raise foreign ownership rates in “Etisalat” and “Du” may be followed by other decisions from companies in other sectors to raise the percentage Foreign ownership, pointing out that a sector such as banks requires a high percentage of citizen ownership in it, as it is linked to the state's economic security.
It is noteworthy that «Etisalat Group» agreed, during a meeting of its Board of Directors, the day before yesterday, to raise the percentage of ownership of its shares by non-citizens to reach 49%.
According to Etisalat, the implementation of the Board of Directors' decision in this regard requires the amendment of the Federal Decree-Law No. (3) issued in 2015 regarding the Emirates Telecommunications Corporation, as well as the amendment of the company's articles of association, which requires the approval of the company's general assembly and the competent authorities.
The board of directors of the Emirates Integrated Telecommunications Company, affiliated with the brand “du,” decided, during a meeting, to allow non-citizens, whether a natural or legal person, to own up to 49% of the company's capital.
The company stated that it was also decided to allow UAE citizens, whether a natural or legal person, to own up to 100% of the company's capital, and it was also decided to prohibit ownership of the company's shares by any local or international telecommunications company.
The company stated that, taking into account the shareholders who own a percentage of more than 5% of the company's capital, on the date of issuing this decision, it is prohibited to directly or indirectly own possession of any natural or legal person, with a percentage that exceeds 5% of the company's capital.
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