Emaar Properties rose to the highest level in more than four years as the property company said it would start offering units of a new project and on bets it would pay a higher annual dividend.
Shares of the developer of the world's tallest skyscraper climbed 4.6 per cent to Dh5.26, the highest close since November 2008. The stock was the biggest gainer on the benchmark DFM General Index. Emaar, whose board will meet tomorrow to discuss the dividend, said it will build two hotels and serviced apartment towers in Dubai that will include 532 apartments and 180 hotel rooms.
"New projects create more and more interest from investors and build momentum," said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital. "Investors are also buying stock ahead of the dividend announcement."
Emaar said it will offer units of The Address Residence Sky View in Dubai and Riyadh on March 2 following a sell-out response to those made available at a separate luxury hotel development in Downtown Dubai last month. In January, Emaar shares surged 30 per cent, the best start to a year since the company went public in 2000.
Dubai's property market is recovering amid a broader pickup in the economy, which probably expanded 5 per cent in 2012, the fastest pace since 2007, according to government forecasts. Tourism, hotel and restaurant industries grew 16 per cent in the first half, official data show. The developer's full-year profit increased 18 per cent after it sold more than 80 per cent of projects available in 2012.
* Bloomberg News