Arab

SABIC to distribute $1.2bn in H2 2020 dividends

DUBAI: The Qatari cabinet approved a draft law on Wednesday that would allow non-Qatari investors to own up to 100 percent of the capital of companies listed on the Qatar Stock Exchange, according to a statement on Qatar News Agency.

Should the law be implemented, companies would have to approve increases in foreign ownership on a case-by-case basis, Bloomberg News reported.

Such a change could lead to inflows of about $1.5 billion into listed Qatari companies, with beneficiaries potentially including Qatar Islamic Bank, Masraf Al Rayan and Commercial Bank of Qatar, Bloomberg cited investment bank EFG-Hermes as saying.

Foreign ownership of many Qatari companies currently sits way below the 49 percent limit. Qatar General Insurance had 32 percent foreign ownership as of April 14, Gulf Warehousing 30 percent and Commercial Bank of Qatar 21 percent, Qatar Stock Exchange data shows.

Saudi Arabia dropped its cap on ownership of publicly traded companies by foreign strategic investors in June 2019, while the UAE said in July of the same year it would allow the emirates to set their own foreign-ownership limits.

Qatar eased rules on foreign property ownership in October last year in an attempt to make the sector more attractive to expatriates, foreign investors and real estate funds.

Lohit Soundarajan

Founder , Editor Tech Guy #Voxguy

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