Dubai index set to break through 3,000 barrier in Q2

The Dubai Financial Market General Index will climb more than 28 percent and pass the 3,000-level by the second quarter of 2010, helped by global markets and quarterly earnings, Gulfmena Alternative Investments has said.

“We will be moving toward the 3,000-level in the medium- to-long term” if the index trades above its 2,200 support level, said Marwan Shurrab, a fund manager at the Dubai-based asset management firm. “International market performance, third- quarter results and strong economic data” from the region will support the rally.

Dubai’s benchmark index has jumped 43 percent this year, as the global financial crisis eased and crude prices rose. The MSCI Emerging Markets Index has soared 68 percent in 2009.

Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum said Sept. 8 he is “not worried” about the emirate’s ability to repay at least $4.52 billion of debt this year. The benchmark index has rallied 17 percent since, closing at 2,342.26 yesterday.

Oil prices have gained 65 percent since the beginning of the year to more than $70 a barrel, helping the crude dependent region bounce back from the global crisis. The International Monetary Fund increased its 2010 economic growth forecast for the Middle East to 4.2 percent from 3.7 percent.

“People are trying to play it safe for the time being in case anything goes wrong, but we’re expecting the market to continue a rally,” said Shurrab.

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