UAE shares rally as oil prices pick up



UAE markets ended mixed on Wednesday, with Abu Dhabi rising 1 per cent and Dubai ending flat.

Shares rallied in afternoon trading on the back of a recovery in oil prices and European equities.

The Euro Stoxx 50 Index, which hit a two-and-a-half year low on Tuesday, rebounded strongly, trading up around 2.6 per cent. Banking shares across the continent rallied, after Deutsche Bank announced it was considering a bonds buy-back, allaying fears of increased credit risks across the continent.

Brent crude futures, which dropped sharply on Tuesday, recovered 2.7 per cent to around $31.12 per barrel in afternoon trading.

Banking stocks were the main gainers in Abu Dhabi.

FGB closed up 2.6 per cent at Dh11.60, while NBAD rose 2.2 per cent at Dh8.10.

The Abu Dhabi Securities Exchange General Index finished the day 1 per cent higher at 4,104.53, making it the region’s best performer.

The index in Dubai fell by more than 1 per cent in early trading, before staging a steady recovery to close 0.15 per cent lower at 3,060.00.

Emaar Properties and Dubai Investments finished down 1.2 and 1.1 per cent respectively.

Ajman Bank surged 8.6 per cent to Dh2.40, its highest close since May.

jeverington@thenational.ae

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What is the definition of an SME?

SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors. 

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