Property Stocks Lift UAE Markets, Emaar Surges Again

Property firms, led by Dubai’s Emaar Properties which said on Sunday that it would float its malls unit in September, lifted stock markets in the United Arab Emirates in early trade on Monday.

Shares in Emaar, the biggest listed developer in Dubai, surged 6.7 per cent on strong volume and dominated trading in the emirate. Dubai’s main index rose 1.9 per cent.

The initial public offer of Emaar’s malls and retail unit will be one of the largest equity sales in the Middle East since 2008, underlining Dubai’s recovery from a credit crisis that forced many state-linked developers to stall projects.

The firm had initially revealed in March its intention to sell up to 25 per cent of the unit in an offer likely to raise Dhs8 to Dhs9 billion ($2.18-$2.45 billion). It will use proceeds from the sale to pay a special dividend to its shareholders.

Smaller developer Deyaar added 1.6 per cent after saying it would soon start sales at a new residential and hotel project in Dubai. Shares in Union Properties rose 0.4 per cent.

Abu Dhabi’s benchmark added 0.5 per cent as that emirate’s largest listed developer, Aldar Properties, jumped 2.7 per cent after announcing a sale of a residential tower for an undisclosed value. Another Abu Dhabi-listed developer, Eshraq Properties, climbed 0.8 per cent.

Qatar’s bourse slipped 0.1 per cent as heavyweight conglomerate Industries Qatar edged down 1.0 per cent and Commercial Bank of Qatar fell 0.9 per cent.