Sunday 3 January 2010

Dubai Shares Gain Most in Gulf as Burj Dubai Is Set to Open

Dubai’s benchmark index rose to the highest in two weeks, leading gains among Gulf markets, as investors speculated that the opening of the world’s tallest tower tomorrow will boost earnings at Emaar Properties PJSC.

Emaar, the United Arab Emirates’ biggest real-estate company and developer of the Burj Dubai, climbed to the highest since November. Arabtec Holding PJSC and Drake & Scull International PJSC, both contractors on the building, also advanced. Dubai’s DFM General Index increased 3.4 percent to 1,865.59 on the first trading day of the year in the emirate, the highest close since Dec. 17. Abu Dhabi’s ADX General Index rose 1.1 percent.

“The opening of the Burj means that first-quarter 2010 results will be very strong as Emaar accounts for revenue when they hand over” properties, said Fadi Al Said, head of equities at ING Investment Management (Dubai) Ltd. The opening of the tower is boosting sentiment among retail investors, Said said.

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