Gains in oil drive rise in Dubai shares

Investor confidence in the region has been building after oil, which funds the bulk of government spending, recovered from the lowest in more than a decade.

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John Everington

Shares in Dubai rose on Sunday, as investors took heart from rising oil prices.

Brent crude futures soared 6.37 per cent on Friday to the year’s high of $41.94, thanks to falling US stockpiles and lower Russian production.

The Dubai Financial Market General Index rose 1.4 per cent to 3,433.69.

Emaar Properties gained 2.1 per cent to Dh6.15, after the developer unveiled plans for the construction of $1 billion skyscraper, “a notch taller” than Burj Khalifa, within its Dubai Creek Harbour project.

Emaar’s announcement provided a boon for real estate and construction stocks. Cooling provider Tabreed rose by 6.8 per cent to Dh1.40, while Deyaar Properties and Arabtec Holding rose by 4.8 per cent and 4 per cent respectively.

The Abu Dhabi Securities Exchange General Index rose by 0.6 per cent to 4,380.63, on the bourse’s busiest trading day in nearly 12 months.

Dana Gas and Eshraq Properties dominated trading, with the stocks climbing 11.1 per cent and 8.8 per cent.

Manazel Real Estate rose by 1.5 per cent to 64 fils, after the developer said it would launch Manazel Amman, a mixed-used development in Jordan’s capital, at this week’s Cityscape Abu Dhabi exhibition.

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