Emaar shares push Dubai stocks to 2015 high as economic outlook lifts mood

Dubai’s main stock index soared to the highest level since August 2015, extending year-to-date gains and supported by a jump in property-related shares.

The Dubai Financial Market General Index advanced as much as two per cent Monday after trading resumed following a four-day break, joining a rally in emerging-market stocks.

Emaar’s strong performance

Shares of Emaar Properties and Emaar Development led the gains in Dubai along with Emirates NBD Bank, the city’s biggest bank.

A relatively resilient domestic economy “is reflecting on the stock market, including strength in real estate and tourism,” said Divye Arora, senior portfolio manager at Daman Investments.

Home to the Burj Khalifa, the world’s tallest building that was constructed by Emaar, Dubai relies heavily on its real estate sector, which makes up more than a third of its consumer price index.

Having emerged from the global pandemic as an investment haven and a magnet for wealth and tourism, Dubai’s economy is set to grow three per cent this year after an estimated five per cent in 2022 and 6.2 per cent the year prior, according to S&P Global Ratings.

Dubai’s real estate market has bucked the trend of falling prices amid surging interest rates seen elsewhere. S&P Global Ratings last month upgraded Emaar Properties a notch higher on “strong demand and improved pricing” in the sector.

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