[ad_1]
The possibility of full foreign ownership also makes listed companies more attractive to investors. The stock will be easier to see for any potential investor, which will ultimately lead to higher performance. Access to new international investors will subsequently help enforce higher standards.
For foreign investors, it eliminates the need to hire a nominee or similar structure, avoiding cumbersome arrangements, additional costs and legal uncertainty.
When it comes to international equity markets, companies ultimately need to deal with multiple risks, including greater volatility and greater exposure to market trends elsewhere.
Emaar appears to be increasing the growth potential for existing and potential new shareholders. Additionally, the stock has remained on high volume and rallied in the days following the announcement that it was waiving non-resident restrictions. Emaar already has more than 40% foreign investor representation; nonetheless, the stock is expected to be more liquid as foreign investors begin to show interest in newly issued shares. This may encourage other companies to follow suit. While the possibility of full foreign ownership of listed companies remains uncommon across the GCC region, we expect more companies to adopt this change. After all, Emaar Properties wasn’t the first to do so — Aramex was the first.
[ad_2]
Source link