DUBAI—The United Arab Emirates has lifted restrictions on the
ownership of Etisalat's shares, opening up one of the region's
largest telecommunications companies to foreign investors for the
first time.
The federal government has decided to allow up to 20% foreign
ownership of Etisalat's shares, the telecom operator said in a
statement.
Foreign institutions and expatriate individuals would all be
allowed to buy shares, the statement added, giving no time frame
for the lifting of the restrictions.
The move to allow foreign ownership in Etisalat, which is listed
on the Abu Dhabi bourse, echoes the opening this month of Saudi
Arabia's stock market to international institutions for the first
time. Analysts have said telecom operators in Saudi Arabia are
likely to be some of the most attractive stocks to foreigners.
Most stocks in the U.A.E. have long been accessible to
international buyers, but some businesses that were deemed
strategic by the government were restricted.
The opening up of Etisalat to foreign investors is likely to
boost the U.A.E.'s weight in globally tracked benchmarks, such as
the MSCI Inc. emerging market index, bringing in fresh passive
flows.
"We believe that the decision to lift the ownership restrictions
on Etisalat is a major catalyst that we have long been waiting
for," analysts at Kuwait-based NBK Capital said in a note on
Tuesday.
Etisalat is present in Africa, Asia and the Middle East and last
year bought 53% of Maroc Telecom in a high-profile deal for €4.2
billion ($4.8 billion).
Emirati nationals own 40% of Etisalat, alongside the Emirates
Investment Authority, which holds the remainder of the company and
is unlikely to reduce its stake, Etisalat said.
Write to Rory Jones at rory.jones@wsj.com
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