Dubai Shares Rise to Two-Month High on Confidence in Debt Terms

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Dubai shares climbed to the highest in more than two months on rising investor confidence that Dubai World, the state-owned holding company that’s negotiating $26 billion of debt, may present a better than expected proposal.

Air Arabia PJSC, the United Arab Emirates’ biggest low-cost carrier, advanced to a four-month high after approving a dividend. Drake & Scull International, a Dubai-based construction company, also rose to the highest since November after it was awarded a contract for infrastructure development works in Abu Dhabi. The DFM General Index climbed 0.7 percent to 1,776.32, the highest since Jan. 11, after losing 0.6 percent yesterday. The index has jumped 12 percent this month.

“As we hear more discussion and rumor on Dubai World debt, it seems to be that sentiment is improving overall,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank. “After a brief period of profit-taking we’re starting to see investors accumulate stock again.”