U.A.E. Shares Gain on Speculation of Improved Banking Earnings

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United Arab Emirates share rose for a second day as investors speculated Dubai’s biggest lenders may report improved earnings later this month and as the country’s central bank governor said economic growth will accelerate.

Dubai Islamic Bank PJSC, the U.A.E.’s biggest Islamic lender, jumped the most in almost two months. Abu Dhabi Islamic Bank PJSC climbed to the highest level since December as the Islamic bank said it may buy back shares. Economic growth in the U.A.E. will quicken from last year’s 0.7 percent and improve “significantly” in 2011, central bank Governor Sultan bin Nasser al-Suwaidi said. The DFM General Index added 0.9 percent to 1,660.97 at the close, bringing the two-day increase to 1.9 percent. The ADX General Index rose 0.6 percent.

“Some people are expecting improved performance” in the earnings of Dubai’s big banks and Emaar Properties PJSC, said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. The results are “the only light in the tunnel.”