Emaar, the UAE's biggest property developer, rises to the highest in more than a week
Dubai shares advanced for a second day as Nakheel, the developer of palm shaped islands off the city’s coast, said it received funds from the Dubai government to repay Islamic bonds maturing in January.
Emaar Properties, the UAE's biggest property developer, gained the most since November 9. Arabtec Holding Co, the biggest construction company in the UAE by market value, gained 1.6 percent. The DFM General Index advanced 0.5 percent to 1,630.52 at the 2 pm close in the emirate. The measure retreated 9.6 percent this year, its worst annual performance since 2008.
“We are seeing support from the government side, and that gives confidence to investors,” said Abdel Rahman Kharma, senior equity trader at Naeem Brokerage in Dubai. “That added to the positive sentiment toward the Nakheel situation.”
Nakheel, controlled by state owned Dubai World, said it had received money from the Dubai Financial Support Fund to pay $816.3m in principal and $10.3m in profit on the 2.75 percent sukuk due January 16. Bondholders will also receive an additional payment of $45m.
“Following the repayment, Nakheel would have repaid all previously issued sukuk and requests Nasdaq Dubai to delist them,” the company said today.
The developer said December 29 it reached an agreement with 91 percent of its trade creditors as it seeks to delay payments on at least $10.5bn of loans and bills. Dubai World, one of the emirate’s three main holding companies, in October gained approval from all its creditors to change terms on $24.9bn of loans.
Emaar climbed 2.6 percent to AED3.55. The developer said a unit is collaborating with Emirates Healthcare which will operate clinics in Dubai. Arabtec rose to AED1.97, the highest since December 21.
The Bloomberg GCC 200 Index of companies in the region advanced 0.1 percent, taking its rally this year to 13 percent. Abu Dhabi’s ADX General Index increased 0.7 percent. Qatar’s gauge advanced 0.2 percent, while Kuwait’s SE Price Index retreated 0.1 percent. Oman’s MSM30 Index rose 0.1 percent and Bahrain’s measure added 0.3 percent. Saudi Arabia’s market is closed for the weekend.