MIDEAST WEEKAHEAD-Dubai stock investors place World Expo bets ahead of vote | Reuters:
"* Site of 2020 Expo to be chosen in late November
* Speculators betting on firms such as Dubai Investments
* But some Expo-related firms may be fully valued
* History suggests market rally could be short-lived
* Other factors much more important for Dubai in long term
By Nadia Saleem
DUBAI, Sept 24 (Reuters) - Shares in Dubai Investments Co , a conglomerate with interests ranging from glass-making to edible oils and Islamic reinsurance, have more than doubled this year. But the rise has little to do with its business in those sectors.
Instead, investors are hoping Dubai will win the right to host the World Expo in 2020. Dubai Investments owns Dubai Investments Park, a big mixed-use real estate development next to the proposed Expo location, as well as land nearby.
The Expo may make the company's real estate holdings a lot more profitable in coming years - if, that is, Dubai gets to host the event.
Two months ahead of an international vote which will decide that question, Dubai's stock speculators are betting on the outcome. But it is by no means clear that the Expo can deliver as much of a boost to share prices as they are anticipating."
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