Markets rally continues

Emaar confirms participation in Saudi Arabia's Kingdom Holding project, clarifying its role as manager.

The Abu Dhabi Securities exchange joined regional bourses to continue the recent rally.

Shares in Dubai rose to their highest level in seven months after Emaar Properties, the biggest developer in the UAE, was chosen to build the world's tallest tower in Saudi Arabia. Emaar shares climbed 7.1 per cent to Dh4.18 a share. The company will offer management services to Kingdom Holdings in return for a fee on the Dh100 billion riyals ($26.7 billion) project in Jeddah. Traders said news of the deal helped property shares across the board, powering the Dubai market to its highest level in seven months. In a statement issued after the close, Emaar clarified that it will not invest directly in the Saudi tower, but provide management services. Share values were also buoyed by positive sentiment about a global economic recovery that could take root soon in the Emirates. The UAE beat other Asian and Pacific trade hubs such as Singapore and Hong Kong to be named as the place where traders were most optimistic about seeing growth in foreign trade over the next three months, according to a survey by HSBC released yesterday. The survey found that almost three quarters of UAE importers and exporters expected trade volumes to increase or stay the same, against 53 per cent in Hong Kong and 64 per cent in Singapore. The Dubai Financial Market (DFM) gained 4.75 per cent to 2,198.31, the highest since Nov 12, as other property and construction shares rose. Deyaar was up 7.52 per cent, while Drake & Scull climbed 6.96 per cent. The Abu Dhabi Securities Exchange (ADX), which climbed 3.35 per cent to 2,963.63, also saw gains in property shares. Shares in Sorouh rose 4.08 per cent to Dh3.57 while Aldar was up 4.26 per cent to Dh4.90. RAK Properties was one of the biggest movers of the day, rising 8.54 per cent to Dh0.89. Dubai developers are seeking to tap into new markets after property prices fell sharply and banks cut back on mortgage lending. Banking shares also saw gains. On the DFM, Dubai Islamic Bank rose 6.96 per cent to Dh3.07 and Ajman Bank was up 10.25 per cent to Dh1.29. On the ADX, Abu Dhabi Commercial Bank climbed 3.77 per cent to Dh2.20. Shares rallied across the Gulf, with Kuwaiti stocks gaining 0.07 per cent to 8,282.50. Doha's exchange rose 0.87 per cent to 7,363.08 and Bahrain's All Share Index was up 0.28 per cent to 1,586.56. Muscat's general index fell 0.55 per cent to 5,599.05, while the Tadawul exchange in Saudi Arabia fell 0.04 per cent to 6,092.62 after a rally on Saturday. * additional reporting byTravis Pantin and Reuters [e-mail] [e-mail]