Dubai shares rose a tenth day, the
longest rally in six years, as investors turned to assets in the
politically stable emirate on signs the economy is recovering
and after oil advanced.
Emirates NBD PJSC (EMIRATES), the United Arab Emirates’ biggest bank
by assets, surged to the highest since December 2009. Dubai
Financial Market (DFM) PJSC rose 0.7 percent. The DFM General Index (DFMGI)
climbed 0.1 percent to 1,681.93, the highest since Dec. 9, at
the 2 p.m. close in Dubai. The measure completed its longest
winning streak since April 2005. The gauge, which rose 3.7
percent this week, has surged 24 percent from a low on March 3,
surpassing the 20 percent threshold some consider the beginning
of a bull market.
Shares are up on the “positive economic environment in the
U.A.E. We’re seeing trade and tourism in particular soar and
sentiment is good,” said Mahdi Mattar, head of research at Abu
Dhabi-based CAPM Investment PJSC. “Internationals are looking
at the MSCI inclusion, but more important, local investors are
back” after exiting the market amid uprisings that spread in
the Middle East. Higher oil has helped gains, he said.
The emirate’s economy, the second-biggest of the seven in
the United Arab Emirates, may grow as much as 4 percent this
year, according to Citigroup Inc., compared with 2.2 percent
last year. Dubai Airports, home to the biggest Arab airline,
Emirates, expects passenger traffic to climb 11 percent to 52.2
million this year, it said in January.
Credit Crisis
Dubai, on the brink of a debt default in 2009, is emerging
as the closest thing to a safe haven in the Middle East and
North Africa as violence erupted in countries such as Libya and
Bahrain. Families from Tunisia, Egypt and elsewhere are moving
to the more politically stable emirate, attracted by its liberal
lifestyle, schools and housing, now cheaper after the credit
crisis cut prices by more than half.
Dubai’s index has advanced 8.1 percent this month on
investor optimism markets in the U.A.E. will be raised to
emerging market status at index provider MSCI Inc. The MSCI
Emerging Markets Index has gained 3 percent in the period.
Oil climbed as much as 0.9 percent to $112.48 a barrel in
electronic trading on the New York Mercantile Exchange. The
contract has soared 23 percent so far this year amid an armed
conflict in Libya. The six nations of the Gulf Cooperation
Council, including the U.A.E. and Qatar, supply about a fifth of
the world’s oil.
Emirates NBD advanced 2.7 percent to 3.8 dirhams. The DFM,
the only Gulf Arab stock market to sell shares to the public,
rose to 1.46 dirhams, the highest since Feb. 7.
The Bloomberg GCC 200 Index (BGCC200) and Qatar’s QE Index (DSM) rose 0.2
percent. Kuwait’s measure and Abu Dhabi’s ADX General Index (ADSMI)
gained 0.1 percent, while Oman’s MSM30 Index (MSM30) dropped 0.2
percent. Bahrain’s BB All Share Index was little changed. Saudi
Arabia’s market is closed for the weekend.
To contact the reporter on this story:
Zahra Hankir in Dubai at
zhankir@bloomberg.net
To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net