Dubai markets jumped higher in early trade on Monday on the news that the United Arab Emirates will lend the emirate at least $10bn in a bail-out aiming to restore confidence and rescue the struggling economy.
The Dubai Financial Market index rose 5 per cent as traders welcomed the sign that the federal institutions will help the government as it seeks to refinance its $74bn debt mountain. This includes $13bn of repayments due during the remainder of 2009, according to estimates by EFG-Hermes, a local investment bank.
Emaar Properties, a Dubai government-backed real estate giant, which was hit in trading on Sunday on news that its US unit had filed for Chapter 11 bankruptcy, was up 12.7 per cent as the mood around Dubai lifted. DP World, a government-controlled container ports operator, rose 4.5 per cent on Nasdaq Dubai.
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