DUBAI // On a day when just about every UAE stock recorded gains, no sector seemed to profit more than regional banks.
Dubai Islamic Bank, Emirates NBD and Abu Dhabi Commercial Bank (ADCB) each climbed sharply on the news of Dubai World's debt restructuring proposal.
Smaller banks such as Union National Bank and Ajman Bank also rose more than 5 per cent.
The Dubai Government said yesterday it would inject US$9.5 billion into Dubai World and its property developer Nakheel.
And Nakheel said it would repay its trade creditors, ending months of uncertainty in the market about whether creditors will have to take a "haircut", or reduction, on their receivables.
"The most surprising thing was that there are no haircuts and the loans will be restructured on commercial rates.
"This has pleasantly surprised the market," said Mohammed Ali Yasin, the general manager at Shuaa Securities.
Banking stocks have taken a hammering since Dubai World announced in November it is seeking to restructure $26bn worth of loans with more than 90 local, regional and international lenders. Moody's Investors Service estimated last month that rated UAE banks have an overall exposure to Dubai World of Dh55bn.
It is not clear how those obligations are spread around.
ADCB, the third-largest bank in Abu Dhabi, is the only local lender to quantify its exposure: Dh9bn in outstanding loans to Dubai World.
About half of the total is supported by collateral and income streams from infrastructure and other projects, Alaa Eraiqat, the chief executive of ADCB, said this year.
Along with Emirates NBD, the country's largest lender by assets, ADCB sits on the lenders' committee negotiating terms of restructuring with Dubai World.
While Dubai World officials made it clear that they did not favour local banks over their international peers, regional investors were clearly pleased with the terms of the suggested deal.
Not only do sukuk holders get paid as the instruments mature, unlike the trade creditors who receive a combination of cash and securities, they should also benefit as the effects of the deal seep into the broader economy.
"This is the first time investors can quantify risks on equities.
"I think with some more clarity on how the deal is being structured, markets will move forward," said Ian Munro, the head of equities research at the investment bank Mac Capital.
@Email:skhan@thenational.ae
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World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
UAE currency: the story behind the money in your pockets
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Sanchez's club career
2005-2006: Cobreloa
2006-2011 Udinese
2006-2007 Colo-Colo (on loan)
2007-2008 River Plate (on loan)
2011-2014 Barcelona
2014–Present Arsenal
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