DIB shareholders approve removal of foreign ownership limit

The shareholders of Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, have approved an increase in foreign ownership to 40 per cent as proposed by the board.

Dr. Adnan Chilwan, the Group CEO of DIB, said, “Eyeing the tremendous interest from global investors, we have re-opened the doors for more foreign ownership with the enhancement of foreign ownership limit to the maximum allowable 40 per cent limit.

The board had recommended an increase in the foreign ownership limit of its shares to 40 per cent from 25 per cent, subject to regulatory and corporate approvals.

The shareholders also approved the dividend pay-out of 35 fils per share. Last month, the bank reported a profit attributable to owners of AED 5 billion for 2019, up from AED 4.9 billion a year earlier.

In January 2020, DIB completed the acquisition of Noor Bank, which was majority-owned by the Investment Corporation of Dubai, creating one of the world's biggest Islamic lenders, with total assets of over AED 275 billion.

DIB’s decision to increase foreign ownership limit is in line with other financial institutions that are raising ownership caps on their stocks to attract foreign investors after the UAE removed restrictions last year.

First Abu Dhabi Bank has proposed removing a cap on foreign ownership. Emirates NBD and Abu Dhabi Islamic Bank are among the other lenders seeking the same.