Dubai Shares Rise to November High on Bond Issue; Oman Gains

Dubai shares soared to the highest since November after Emaar Properties PJSC’s chairman said the sheikhdom may raise a further $10 billion next month to help state-related companies through the credit crisis.

Mohammed Alabbar, who also heads the government committee evaluating the impact of the global credit crisis on Dubai, told CNN in an interview on Oct. 9 the emirate may borrow the second tranche of a $20 billion fund in November. Emaar, the emirate’s biggest developer, rose to the highest intraday level since Nov. 10. Arabtec Holding PJSC rose to the highest in a year. The DFM General Index added 1.2 percent to 2,323.88 at 11:34 a.m. in Dubai, heading for the highest close since Nov. 11.

“Alabbar’s disclosure is definitely helping the credit- worthiness of Dubai as well as furthering the cash-flow situation,” said Yazan Abdeen, a fund manager at ING Investment Management Dubai Ltd. “The real-estate problem will be solved with cash.”