(MENAFN - Khaleej Times) Bourses in the uae and qatar are poised to get another key boost in september 2014 when international equity index compiler s&p dow jones indices will formally reclassify both countries as emerging markets.
s&p dow jones indices move announced in october 2013 is line with the current move by index provider msci to rope in both countries to emerging market category an upgrade that stock market analysts believe could trigger foreign investment inflow of between 2.5 billion and 15 billion to the region over the next few years.
s&p dow jones indices has cited the uae’s current foreign ownership limit of 49 per cent as satisfactory and noted that there is an expectation that it would be relaxed in coming years.
the index compiler has noted qatar’s efforts to raise foreign ownership limits for stocks though the limits were still below the levels of most emerging markets as well as reforms to settlement systems and trading facilities.
“egypt and morocco will remain emerging markets while bahrain kuwait and oman will keep their status as frontier markets and saudi arabia will stay classified as a “standalone market” s&p dow jones indices has said in a statement.
some fund managers use s&p dow jones index as investment benchmarks. investment managers believe that it remains a priority that both the uae and qatar continue to attract institutional foreign investment for stability for region. the uae could also see an increase in international investment should plans for the new investment law which contains legislation allowing foreigners full ownership of companies in industries that could potentially benefit the country’s economy be passed before the year-end.