• Business

Dana Gas, based in the UAE, has increased its foreign ownership limit to 100%, according to recent news.

by Swati Gupta

May 31, 2023 25

The United Arab Emirates (UAE) is taking significant strides towards fortifying its capital markets as Sharjah-based energy company Dana Gas plans to raise its foreign ownership limit to 100 percent. As a listed firm on the Abu Dhabi market, Dana Gas announced that it has secured the approval of regulatory authorities to increase the percentage of foreign ownership from 49 percent to the maximum allowable limit of 100 percent. This significant development was disclosed in a regulatory filing on the Abu Dhabi Securities Exchange.

As the largest private sector natural gas company in the region, Dana Gas highlighted that this move aligns perfectly with the UAE’s new Commercial Companies Law, which abolished the requirement for UAE nationals to own a minimum of 51 percent of onshore firms. By opening its company fully to foreign ownership, Dana Gas aims to contribute to the UAE’s vision of strengthening its dynamic capital markets by attracting a greater number of international investors and deepening market liquidity.

Dana Gas Chairman, Hamid Jafar, expressed his enthusiasm for the milestone, stating in a press statement, “Opening our company fully to foreign ownership will support the UAE’s vision of strengthening its dynamic capital markets by attracting greater numbers of international investors and deepening market liquidity.” Jafar further emphasized that the company’s growth outlook remains robust, particularly in the Kurdistan region of Iraq, where Dana Gas is actively seeking to increase production.

The decision to raise the foreign ownership limit to 100 percent signifies a significant shift in the UAE’s business landscape, promoting a more open and investor-friendly environment. It aligns with the government’s ongoing efforts to attract foreign investment and diversify the economy beyond its traditional reliance on oil and gas. By removing ownership restrictions and allowing greater foreign participation, the UAE aims to encourage innovation, foster economic growth, and position itself as an attractive investment destination on the global stage.

Dana Gas’ strategic move to leverage the new regulations is expected to have a positive impact on the company’s operations, as it opens doors to new investment opportunities and potential partnerships with international players. The energy company’s focus on the Kurdistan region of Iraq, known for its substantial natural gas reserves, reflects its commitment to expanding its production capabilities and maximizing the region’s potential.

The UAE has consistently demonstrated its commitment to economic diversification and enhancing its capital markets. The recent regulatory changes, including the amendment of the Commercial Companies Law, are part of a broader vision to create a business-friendly environment that attracts foreign investors and fosters sustainable growth. By removing ownership restrictions, the UAE aims to unleash the full potential of its companies and create a more competitive landscape that drives innovation, job creation, and economic prosperity.

The UAE’s move to raise the foreign ownership limit to 100 percent reflects the country’s ongoing efforts to diversify its economy and create a more investor-friendly environment. By removing ownership restrictions and encouraging foreign participation, the UAE aims to stimulate innovation, drive economic growth, and position itself as an attractive global investment destination.

Dana Gas’s strategic decision to capitalize on the new regulations is expected to have a favorable impact on its operations. The company anticipates new investment opportunities and potential partnerships with international entities as it leverages the increased foreign ownership limit. By focusing on the Kurdistan region of Iraq, which boasts substantial natural gas reserves, Dana Gas aims to expand its production capabilities and maximize the region’s potential.

As Dana Gas moves forward with its plan to raise the foreign ownership limit to 100 percent, it sets an example for other companies in the region to embrace openness and attract global investments. This bold step reinforces the UAE’s position as a leading destination for foreign capital and signals its commitment to further strengthening its capital markets. The future looks promising as the UAE continues to evolve its business ecosystem, driving sustainable growth and positioning itself as a global hub for investment and innovation.