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Emaar delays news of land deal

A bull run on Emaar Properties shares that began last Thursday has ended with news that details of a shares-for-land deal with Dubai Holdings will not be revealed for another month, or even two.

Shares of Emaar surged by 6 percent on Sunday as speculation rose on a forthcoming announcement about its land deal with Dubai Holding.
But yesterday the company's Chairman Mohammad Al Abbar said that a detailed announcement about the land deal would be postponed by up to two months.

The announcement was followed by a sell-off of Emaar shares, dragging its price down by almost 4 percent.

In early trading today (11am UAE, Thursday), the stock has lost a further 1.3 percent.

Dubai Holdings announced on March 20^th that it was acquiring 27.9 percent of Emaar Properties in return for an undisclosed parcel of land being given to the developer.

At the time, Emaar promised it would reveal details of the land it was to acquire at an extraordinary general meeting that was pencilled in for two weeks later.

Uncertainty about how much land, and its location, has suppressed Emaar's share price since the Dubai Holdings deal was announced.

"The more time it takes for Emaar and Dubai Holding to give details on the deal the more damage it will cost stocks in the UAE," said Amr Diab, head of sales at EFG-Hermes.

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