Monday 14 December 2009

United Arab Emirates Shares Climb on Dubai World Debt Optimism

Dubai shares posted the biggest two- day gain in more than a year and Abu Dhabi’s index added the most since March on bets Dubai World would make a last-minute move to avoid a default on its property unit.

Emaar Properties PJSC, the United Arab Emirates’ biggest property developer, jumped 6.8 percent, while National Bank of Abu Dhabi, the country’s second biggest lender by assets, increased the most in 10 months. The DFM General Index rose 3.3 percent to 1,695.35, bringing its two-day gain to 11 percent, the most since October 2008. Abu Dhabi’s measure added 4.5 percent, the biggest one-day jump since March 24.

Dubai’s index has tumbled 19 percent since Dubai World, the state-owned holding company, said on Nov. 25 it would seek a “standstill” agreement on its debt repayment, including for property unit Nakheel PJSC. The company’s $3.52 billion Islamic bond matures tomorrow. Dubai World began talks with banks two weeks ago to restructure $26 billion.

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