Dubai’s benchmark stock index rose to the highest in more than five years as the emirate starts regulating the holiday home rental market and construction company Arabtec Holding PJSC won a contract.
The DFM General Index advanced 0.6 per cent to 3,031.80, the highest since November 2008, at 12:13 p.m. in Dubai. The measure has surged 87 per cent this year, making it one of the world’s best performers tracked by Bloomberg. Arabtec increased as much as 1.5 per cent after a venture led by its unit won a $900 million deal to build a hospital. Emaar Properties PJSC was poised for the strongest close since October 2008. Qatar’s QE Index gained 0.4 per cent to the highest since Nov. 20.
Dubai’s property companies are benefiting from an economic recovery and a rebound in construction as the emirate won the right to host the World Expo in 2020. The Department of Tourism & Commerce Marketing will start issuing licenses to owners and investors planning to rent furnished properties on a daily, weekly or monthly basis, state-run WAM reported.
“Dubai allowing time sharing will certainly boost the tourism sector, bring in more foreign direct investments and absorb real estate supply that’s expected to come to the market,” said Tariq Qaqish, who oversees the equivalent of $136 million as head of asset management at Dubai-based Al Mal Capital PSC, in an e-mailed response to questions. Arabtec winning another contract adds to its existing “strong backlog,” he said.
Arabtec gained 1.1 per cent to Dhs2.66 and Emaar, Dubai’s biggest developer, rose 1.4 per cent to Dhs6.6.
Dubai’s economy may grow 6.4 per cent on average over the next three years, Barclays Plc said in a Nov. 26 report. Bank of America Corp. said in September the expo may boost gross domestic product by 0.5 percentage point annually and two percentage points in 2020.
Abu Dhabi’s ADX General Index advanced 0.8 per cent, Saudi Arabia’s Tadawul climbed 0.4 per cent, while Kuwait’s measure and Bahrain’s added 0.2 per cent. Oman’s MSM30 Index was little changed.