Amanat receives regulatory approval to boost foreign ownership limit to 100%

The increase will become effective from September 6, the company says

The DFM-listed Amanat Holdings specialises in investments in health and education sectors. EPA

Amanat Holdings, a Dubai-based education and healthcare investment company, has received regulatory permission to boost foreign ownership limit of its shares to 100 per cent.

The company received the nod from the Securities and Commodities Authority to increase the limit from 49 per cent, effective September 6, Amanat said in a regulatory filing on Thursday.

“All the shares in the company are nominal, and the provisions of the law and the resolutions issued for its implementation with regards to the ownership of shares must be adhered to,” the company, said.

Amanat is the latest UAE company to receive a nod from the markets regulator as listed entities push to boost the level of foreign direct investment in their stocks, and become part of major equities indexes such as the FTSE Russell and MSCI emerging market benchmarks.

Major UAE financial institutions including First Abu Dhabi Bank, Dubai Islamic Bank and Emirates NBD are among companies that have already increased their foreign ownership limits.

In May, the Middle East's biggest courier company Aramex received SCA permission to raise its foreign ownership limit to 100 per cent from 49 per cent.

Amanat this month posted a sharp drop in its second-quarter net profit as financing costs increased.

The company, which is currently examining several potential investment opportunities, reported net profit of Dh34.63 million ($9.43m) in the three months to the end of June, compared with Dh203.82m recorded a year earlier, it said in a statement to the Dubai Financial Market.