The benchmark stock index of Dubai has jumped to the highest level since October, 2009 and the total value of the shares being traded increased mainly because the property recovery and debt restructuring were able to lure the investors. The measures of Abu Dhabi went ahead as well. The DFM General Index increased by 2.7% and the same is now at 2,255.19. In this quarter, the gauge has gone ahead by 23%, thereby becoming the best performing index in the period. The value of shares traded was at 1.1 billion Dirhams, the biggest since March, 2010.
The property companies and banks in Dubai are currently on a recovery mode from the property crash that took place in 2008. On this month, Dubai Group LLC, an Investment Company which is owned by the ruler of Dubai announced that it is on the final terms with main creditors to make a restructure worth $6 billion. The average price of a mid-range villa in Dubai surged ahead by 44% in 2013, as reports were published by Cluttons LLC.
The Director of the Middle East and North Africa Research Department at Exotix Ltd., Gus Chehayeb, believes that the Dubai stock index is currently on fire, as the investors are quite confident in the real estate and banking outlook of the emirate. Chehayeb added that the local retail investors also have woken up after being shaken off by the losses which they experienced from 2008 to 2011.
As far as Government forecasts are concerned, economy of Dubai is going to expand by 4.6% on average in the 3 years between 2012 and 2015; more than twice of growth experienced in the 4 years prior to 2012. Incidentally, the benchmark stock index of the Emirates tumbled by 72% in 2008.
Dubai Islamic Bank saw its shares gaining 5.8% and each share of the same is currently priced at 3.11 Dirhams. Dubai Islamic Bank shares have gone ahead by 54% in this quarter. On the other hand, one of the biggest lenders to the Dubai Group, Emirates NBD PJSC saw its shares going ahead by 4.7%, thereby taking the gain for 2013 to 96%. The developer of the tallest building in the world, Emaar Properties went ahead by 3.1% as each share is now priced at 5.72 Dirhams. Emaar has shown good jumps in 2013.