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Wednesday, 14 April 2010

Dubai Shares Gain as Arabtec Ends Stake Sale, Buoying Builders

Dubai stocks rose for a third time this week after Arabtec Holding Co. cancelled plans to sell a stake to a government-controlled company, boosting investor confidence in the United Arab Emirates’ construction industry.

Arabtec, the country’s biggest construction company, soared to the highest level in almost two weeks. Dubai-based construction companies Drake & Scull International PJSC and Deyaar Development advanced the most in almost a week. The Dubai Financial Market General Index rose 0.1 percent to close at 1,824.27. The gauge advanced as much as 1 percent earlier today. The Bahrain All Share Index gained 0.5 percent.

Aabar Investments PJSC of Abu Dhabi, the largest shareholder in Daimler AG, offered to buy 70 percent of Arabtec through the purchase of mandatory convertible bonds in January. The developer said Feb. 28 it agreed with Aabar to extend the due diligence process for an Arabtec stake sale to April 16.