A test of patience

the surge in share price of Emaar Properties shows there is benefit in having patience when it comes to financial investment

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Patience and faith are always helpful attributes for investors, but there are few examples that illustrate this point as clearly as Dubai, which is surging on the back of the UAE's rebounding housing, retail and tourism sectors.

News this week from the emirate’s highest-profile corporates from the boom years, including Dubai International Capital, Istithmar World, and Emaar Properties shows that this approach will pay off over time.

DIC is ready to invest again, while Istithmar is selling its stake in a landmark resort in Florida and Emaar is expected to give the nod for bondholders to take equity in the company.

The really good news is that those who invested in Emaar’s bonds in 2010, when the naysayers were loudest about Dubai’s prospects, and held on to their investments are set to be rewarded handsomely for their faith.

Bondholders could ultimately exchange the debt at a price of Dh4.38 a share, compared to a current trading value of more than Dh7, that translates into a profit of over 70 per cent.