Dubai stocks are now at the highest level in more than 3 years thanks to the new hotel project of EMAAR. This new project is expected to grow the revenue of EMAAR which has the biggest skyscraper in the word to its credit. This type of sentiment helped the overall Dubai stock exchange as well.
The benchmark gauge DFM General Index surged ahead by 1.2% and is currently at 1945.95. Incidentally, this marks its highest close value since November, 2009. EMAAR on the other hand, announced of its new project for building 2 luxury hotels and serviced apartment towers in the Central Dubai. It is named as Address Residence Sky View project. Only last month, the first phase of its luxury hotel development project was sold out. The company has announced that it will accept offers in Riyadh and Dubai for the Address Residence Sky View project.
Incidentally, the property market of Dubai experienced a huge fall in 2008 (Of around 65%). However, since then, it has recovered and the economy actually expanded by 5% in 2012. This marks its best performance since 2007 as the Government says that the hotel, tourism and restaurant industries of the same have flourished in last year.
According to the Head of Institutional Trading department of EFG-Hermes Holding SAE, Julian Bruce, as the confidence in the UAE real estate is increased now; many investors feel that the any new developments which are offered for sale will command the ever increasing premiums. He added that the recent offerings have supported this sentiment and over the next few months, whatever international launches are done, all of those are expected to be quite well bid.
EMAAR shares increased by 4.6% and each of its shares are currently priced at 5.26 dirhams, marking its best figure since November, 2008. On the other hand, the largest builder in UAE by market value, Arabtec Holding Co. saw its shares increasing by 1.3% to 3.02 dirhams. Currently, Arabtec shares are at the highest level since 5th February.
The relative strength index of the DFM General Index has increased to 75. Incidentally, many analysts feel that any rating above 70 denotes that the gauge will decline in the coming weeks. A total of 299 million shares changed hands today, while the daily average for last 30 days has been 180 million shares.