DFM-listed Aramex is the first onshore company in the UAE to increase FOL to 100%


Aramex, one of the world’s leading providers of complete logistics and transportation solutions, has obtained the necessary approvals from the Securities and Commodities Authority (SCA) and all other relevant regulatory authorities to formally increase the foreign ownership limit ( FOL) at 100%, down from 49% cent, making it the first onshore company in the UAE listed on the Dubai Financial Market (DFM) to allow full ownership of its floating shares by foreign investors.

Captain Mohamed Juma Alshamsi, Chairman of the Board of Aramex, said: “This is an important milestone for Aramex and the UAE capital markets. This decision was made possible by the historic foreign ownership and investment reforms in the United Arab Emirates, as directed by our wise leadership, and as announced in 2020. These reforms, coupled with investor-friendly policies, promote stronger corporate governance practices, serve to attract and protect the interests of all shareholders.

“With a clear strategic roadmap to support our growth ambitions, Aramex seeks to further connect the world and facilitate global trade. That’s why we believe the time is right to offer investors around the world a fair opportunity to invest in Aramex’s journey to sustainable growth. Additionally, through investing in Aramex, investors will be exposed to one of the most critical sectors in the UAE, a well-diversified and strategically located country linking East to West. They will also invest through a well-regulated stock exchange in one of the world’s leading capital market centres, Dubai,” Alshamsi said.

On Wednesday, April 27, 2022, the Aramex Board of Directors passed a resolution to amend Article (6) of the Company’s Articles of Association to remove foreign investment restrictions and increase the Company’s FOL 100 %.

“Removing the foreign ownership limit on our shares will provide investors with the opportunity to invest in Aramex as we embark on the next stage of growth and expansion, guided by a well-defined strategy. We are creating value through a redesigned operating model supported by a healthy balance sheet. Mergers and acquisitions are a key part of our business strategy and we are considering several accretive deals that could add substantial inorganic growth,” said Othman Aljeda, CEO of Aramex.

“We are committed to best practices in investor relations and have an active engagement program with our shareholders and potential investors. We look forward to expanding it further in line with today’s announcement. Aramex is included in the FTSE Emerging Market Index and the MSCI Small Cap Emerging Market Index. The increase in foreign dominance should increase the stock’s weight in these indices, which means that Aramex could benefit from an increase in passive money from funds that track the FTSE and MSCI,” concluded Aljeda. .

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