While markets rallied late last week after heavy selling pressure, the recovery is not expected to last.
"The latest bounce [on the Dubai Financial Market (DFM) General Index on Thursday] may extend in the very short term but selling is expected to return and put further pressure on the market," said Adel Merheb, the technical analyst at Shuaa Capital based in Dubai.
The DFM fell 4.4 per cent lower to 1,605.22 for the week, while Abu Dhabi Securities Exchange (ADX) General Index closed 4.2 per cent lower at 2,641.10.
Mr Merheb added that, for ADX's measure, "the potential short-term rebounds is possible but they will represent counter-trend moves and, hence, should be followed by renewed selling pressure".
Rami Sidani, the head of MENA investments for Schroders Fund Management based in Dubai, said global factors continued to dictate and mirror the region, and there had been little discrimination between a good and bad stock.
"However, the recent corrections have offered great entry points into some value stocks for long-term investors," he said.
The fund manager's top pick is Emaar Properties, the Dubai developer, as he sees it as a cheap yet valuable stock. He said the market had not been fair in pricing the sustainable recurring income generated from malls and hotels.
On Thursday, sources told Reuters that Saudi's Emaar Economic City, which is affiliated to the Dubai developer, would receive a loan of 3 billion Saudi riyals (Dh2.93bn) this year from the finance ministry.
In response, Emaar Properties surged 1.7 per cent last Thursday to Dh3.15 per share.
Nevertheless, Mr Sidani said investors should think long term.
"Investors shouldn't be distracted with the short term and focus on noise coming from the global financial market," he said. "As long as the focus remains on the market's long-term view, they should expect strong returns when positioned in the right equities."
Last week, property stocks in the UAE fell the most on Tuesday as the world markets plunged. They managed to recover their losses by the end of the week, however.
In Dubai, Emaar Properties fell 7.5 per cent to Dh3.41, Deyaar Development dropped 10.5 per cent to Dh0.34 and Union Properties fell 8.6 per cent to Dh0.42 for the week. In Abu Dhabi, Aldar Properties dropped 9.8 per cent to Dh3.22, and Sorouh Real Estate fell 4.9 per cent to Dh2.11 for the week.
Egypt, one of two markets to be granted emerging markets status by the analysts MSCI Barra, will be the bright spot of the year, said Alfred Fayek, the managing director of institutional equity sales at EFG-Hermes in Dubai.
The upgrade is in acknowledgement of its performance throughout the year as well as its depth and ability to attract foreign investment to its markets.
The Egyptian stock exchange is working on creating the framework for index-linked funds, which Mr Fayek said would pour more inflow of investment into the market, and boost Egyptian stocks.
The EGX 30 index performed 0.8 per cent lower for the week, ending at 6,337.51. Overall, the index has performed 2.07 per cent higher this year to date.
The Saudi Arabia Tadawul All-Share Index fell 6.5 per cent to 5,862.31 for the week, while Qatar's QE index closed 4.1 per cent lower at 6,683.02.
Oil fell to below US$70 a barrel early in the week, affecting petrochemical stocks sharply, before it recovered. Mr Fayek said he expected oil to average about $70 a barrel, which should bode well for stocks such as Saudi Basic Industries Corporation (SABIC) and Industries Qatar (IQCD). SABIC closed the week 9 per cent lower at 80 Saudi riyals, while IQCD closed the week 4.3 per cent lower to 96 Qatari riyals.
Elsewhere in the Gulf, Bahrain's gauge fell 2.5 per cent to 1,453.82. Oman's main measure closed 1.7 per cent lower to 6,307.21 for the week. Kuwait's index, meanwhile, dropped 2.6 per cent to 6,997.30.
halsayegh@thenational.ae
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Red Star Belgrade v Tottenham Hotspur, midnight (Thursday), UAE
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
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