DUBAI — Dana Gas, the largest private sector natural gas company in the United Arab Emirates (UAE), has received regulatory approval to eliminate restrictions on foreign ownership in its shares, paving the way for increased international investment in the energy firm. The move aligns with the UAE’s recent Commercial Companies Law, which eliminated the longstanding requirement for UAE nationals to own a majority stake in onshore companies.
In an announcement made on Monday through a regulatory filing on the Abu Dhabi Securities Exchange, Dana Gas stated that it would now allow foreign ownership in its shares to reach 100%. The company’s Chairman, Hamid Jafar, expressed optimism about the decision, stating that it would support the UAE’s vision of bolstering its dynamic capital markets and attracting a greater number of global investors, thereby enhancing market liquidity.
Jafar highlighted the strong growth prospects of Dana Gas, emphasizing its expansion plans in the Kurdistan Region of Iraq, where the company aims to increase production. Additionally, he mentioned ongoing efforts in Egypt to maximize the value of their assets through negotiations for improved fiscal terms.
The removal of foreign ownership restrictions is expected to have a profound impact on the energy industry and investment landscape in the UAE. By encouraging greater international participation, Dana Gas aims to contribute to the country’s ambitious goals of economic diversification and attracting foreign direct investment.
This landmark decision reflects the UAE’s progressive approach toward economic reforms and its commitment to creating a favorable business environment. The move is anticipated to further strengthen the UAE’s position as a global investment destination, particularly in the energy sector.
Experts predict that the elimination of ownership restrictions will unlock significant opportunities for foreign investors seeking to capitalize on the region’s thriving energy market. With Dana Gas, a key player in the UAE’s energy sector, removing barriers to foreign ownership, the company is poised to become an attractive proposition for global investors eager to tap into the country’s vibrant economic landscape.
As Dana Gas takes this bold step toward full foreign ownership, it sets a precedent for other UAE-based companies, signaling the country’s readiness to embrace globalization and foster an inclusive business environment. The increased influx of international capital is expected to contribute to the long-term sustainability and growth of the UAE’s economy, while establishing the nation as a major player in the global energy industry.
In a time when nations are striving to attract foreign investments and diversify their economies, the UAE’s move to eliminate ownership restrictions stands out as a forward-thinking initiative that aims to stimulate economic growth, encourage innovation, and build stronger ties with the international business community.
Disclaimer: This article is not an investment recommendation. Readers are advised to conduct thorough research and seek professional advice before making any investment decisions.
