Aramex officially increases foreign ownership limit to 100%

Aramex PJSC, a global provider of comprehensive logistics and transportation solutions, has announced it has obtained the necessary approvals to officially increase the Foreign Ownership Limit (FOL) from 49 per cent to 100 per cent.

This makes it the first onshore UAE company listed on the Dubai Financial Market (DFM) to allow full ownership of its free-floating shares by foreign investors.

Captain Mohamed Juma Alshamsi, Chairman of the Board of Directors of Aramex, described it as a "milestone for Aramex and the UAE capital markets".

"This decision was enabled by the landmark reforms to foreign ownership and investment in the UAE, in line with the directives of our wise leadership, and as announced in 2020. These reforms, coupled with investor-friendly policies, promote more robust corporate governance practices, serve to attract and protect the interest of all shareholders alike.

"With a clear strategic roadmap to support our growth ambitions, Aramex is seeking to further connect the world and facilitate global trade. This is why we believe is it the opportune moment to offer investors from all around the world an equitable opportunity to invest in Aramex’s journey towards sustainable growth.

"Furthermore, through investment in Aramex, investors will gain exposure to one of the most critical sectors in the UAE, a well-diversified and strategically located country connecting East to West. They will also be investing via a well-regulated stock exchange in one of the world’s leading capital market hubs, Dubai."

Othman Aljeda, Chief Executive Officer of Aramex, said the move will "provide investors with the opportunity to invest in Aramex as we embark on the next stage of growth and expansion, driven by a well-defined strategy".

"We are creating value through a redesigned operating model underpinned by a healthy balance sheet. M&A is a key element of our business strategy and we are looking at several value-accretive deals that could add substantial inorganic growth.

"We are committed to best practices in investor relations, and have an active engagement programme with our shareholders and prospective investors. We look forward to broadening this further in line with today’s announcement.

"Aramex is a constituent of the FTSE Emerging Market Index and the MSCI Small Cap Emerging Market Index. The increase in the foreign room is expected to increase the stock’s weight in these indices which means that Aramex could benefit from an increase of passive money from funds tracking the FTSE and MSCI."

On Wednesday, April 27, Aramex’s Board of Directors passed a resolution to amend Article (6) of the Company’s Articles of Association to remove restrictions related to foreign investment and increase the Company’s Foreign Ownership Limit (“FOL”) to 100 per cent.