Dubai’s benchmark index rose to the highest in more than five years as real estate stocks extended the rally. Qatari shares advanced.
The DFM General Index climbed 1.3 per cent to 3,199.88, the highest since October 2008, at 12:48 p.m. in Dubai. Emaar Properties PJSC, the developer with the most weighting on the index, gained for a seventh day. Arabtec Holding Co. the biggest construction company in the United Arab Emirates, jumped 4.4 per cent. Abu Dhabi’s ADX General Index advanced 1.1 per cent and Qatar’s benchmark increased 0.6 per cent.
Dubai 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 region’s hub for commerce, tourism and trading will need to invest almost six billion euros ($8.3 billion) on infrastructure projects before the six-month long trade and cultural fair, Sheikh Ahmed bin Saeed Al Maktoum, head of Dubai’s Supreme Fiscal Committee and chairman of Emirates airline, said last month.
“Everyone is buying from the real estate sector,” Abdula Al Hosani, the general manager at Dubai-based Emirates NBD Securities, said by phone. Investors are also focused on real estate and construction stocks in Abu Dhabi, Hosani said.
Aldar Properties PJSC, the largest developer in Abu Dhabi, gained 1.2 per cent to Dhs2.65, the highest since November 10.
Emaar advanced 1.5 per cent to Dhs7.47, poised for its highest close since September 2008. Arabtec rose to Dhs2.86, set for the highest close since April last year.
Saudi Arabia’s Tadawul All Share Index increased 0.3 per cent, while Kuwait’s gauge lost 1.1 per cent, Muscat’s 0.2 per cent and Bahrain’s index was little changed. Egypt’s EGX30 Index added 1.1 per cent.
In Israel, the TA-25 Index declined 0.8 per cent and the yield on the government’s debt maturing in March 2023 was unchanged at 3.55 per cent.