In this quarter, the benchmark stock index of Dubai has definitely become the best performing gauge. Dubai stock gauge has now jumped up to the highest level since 2009 as there are bets that a tourism recovery in the Emirates will help it to boost the corporate earnings. The benchmark gauge DFM General Index has climbed up 0.3% and it is currently at 2185.02 which is the highest since November, 2009, at closing basis. In this quarter, the measure has advanced by 19%, becoming the best performer among all the major stock indexes.
Dubai is planning to double the number of visitors to 20 million within 2020 and triple the annual revenue of the industry to 300 billion dirhams, as stated by the Government on this month. On a whole, around 66 million shares were traded in the UAE based Air Arabia, which is 3.3 times more than the daily average of the last 90 days.
According to the Director of the Shuaa Asset Management, Amer Khan, the carrier is currently benefitting from the economic recovery in the UAE. Apart from that, the investors are also expecting that the transport volumes and the passenger numbers will also show further strength.
Air Arabia has actually been able to jump to the strongest level since November, 2009. The biggest discount airline of the Middle East is scheduled to report the earnings on tomorrow. On last quarter, the company reported that the first-quarter passenger traffic increased by 18% and currently is at a record figure of 1.45 million. As estimated by the Securities & Investment Co., the company will be reporting a 9.5% increase in the quarterly net income. On the other hand, the Chief Executive Officer of Air Arabia, Adel Ali said that the company will take delivery of 10 planes in 2014. Incidentally, Air Arabia shares are the 2nd most actively traded in Dubai and those increased by 2.8%. Each share of Air Arabia is priced at 1.1 dirhams.
On the other hand, the biggest Shariah-compliant lender of the United Arab Emirates, Dubai Islamic Bank PJSC has shown advancement of that of 2.1%. Dubai Islamic Bank was actually the biggest gainer on the index on today as each share of the lender is currently priced at 2.87 dirhams. The lender completed a share-swap agreement with Tamaweel PJSC and this news has helped the shares to grow.