The benchmark stock index of Dubai, DFM General Index rose ahead for the 9th straight day marking its longest winning streak in the last 2 years. The investors are currently optimistic that the Emirates are on a recovery mode from the property cash experienced earlier. Apart from that, the debt is being restructured as well. The gauge in Abu Dhabi rallied ahead too.
The property companies and the banks in Dubai are rallying as these experienced a series of debt restructurings. The ruler of the Emirates is the owner of Dubai Group LLC, an investment company and the same has agreed on terms with the main creditors for a debt restructuring worth $6 billion. On the other hand, Amlak Finance PJSC, which is an Islamic mortgage provider, is currently proposing an extension of maturity on more than $2 billion of loans to the creditors.
According to the Senior Manager of Quantum Investment Bank, Montasser Khelifi, the good sentiment about Dubai is currently on an increasing note and the same is responsible for generating the momentum in the market as well. Khelifi added that investors have witnessed the restructuring deals which are almost finalized for both Dubai Group and Amlak, so, that’s helping the momentum in a better way as well.
As far as the Government forecasts are concerned, the economy of Dubai is going to expand by 4.6% annually on an average between the 3 years 2012 and 2015. If this happens, it will be twice the growth of the 4 years prior to 2012. The largest Shariah-compliant lender in the United Arab Emirates, Dubai Islamic saw its shares jumping up by 4.1%. Each share of Dubai Islamic is currently priced at 3.30 Dirhams. Shares of Dubai Islamic have surged ahead by 64% in 2013.
On the other hand, developer of the tallest building in the world, Emaar Properties jumped the most since 24th February. Emaar shares surged ahead by 59% in 2013 and its today’s gain was 3.5%. Incidentally, Dubai Holding and Emaar will start working on the Al Khiran project which was halted after the 2008 property crisis. This news was reported by Al Bayan newspaper.
The DFM General Index experienced an increase of 2.5% on today and it is currently at 2,352.21, reaching its best close figure since October, 2009. In this quarter, the gauge has advanced by 29%.