The UAE Federal government has lifted the restriction on foreign ownership of Etisalat shares, opening up the largest telecoms operator company to foreign investors for the first time, Etisalat announced on Monday.

"The federal government decided to lift the restriction of Etisalat stock ownership by local institutions, foreign institutions and expatriate individuals provided that such ownership does not exceed 20 percent," Etisalat said in a statement to Abu Dhabi Securities Exchange.

Etisalat added that the Emirates Investment Authority (EIA), a UAE government fund that owns 60 percent of Etisalat, had no intention of reducing its Etisalat stake for the time being.

The remaining 40 percent of Etisalat shares are owned by UAE nationals.