Nov. 10 (Bloomberg) -- Dubai shares advanced after the emirate’s ruler reassured investors that the sheikhdom’s next debt offering will be “well received.”

Dubai Financial Market, the only Gulf stock exchange to sell shares, gained 2.2 percent to 2.33 dirhams. Emaar Properties PJSC closed at the highest level in almost two weeks. The DFM General Index increased for a third day, the longest winning streak in almost a month, advancing 0.7 percent to 2,169.72. Abu Dhabi’s measure also added 0.7 percent.

“This is a natural reaction to the sheikh’s speech yesterday to international investors, which reassured them about Dubai being able to repay its debts,” said Yazan Abdeen, a fund manager at ING Investment Management Dubai Ltd.

Sheikh Mohammed Bin Rashid Al-Maktoum said Dubai’s plan to raise the second half of a $20 billion support fund would be “well received” and will help the emirate pay its financial obligations in the coming years. He said Dubai has the support of Abu Dhabi, which holds 8 percent of the world’s oil reserves.

Dubai, the second-biggest of seven states that make up the United Arab Emirates, set up the fund after the credit crunch hurt its property, finance and tourism industries, leaving companies unable to get funds as credit markets froze. The first $10 billion was raised by selling bonds to the U.A.E. central bank in February, and some of the money went to property developers like Nakheel PJSC, which is building palm tree-shaped islands off Dubai’s coast.

Emaar, the U.A.E.’s biggest property developer, rose 2.3 percent to 4.43 dirhams, the highest level since Oct. 28.

Qatar’s DSM 20 Index advanced 0.6 percent. The Kuwait Stock Exchange index dropped 0.2 percent, Bahrain’s measure retreated 0.7 percent and Oman’s MSM30 Index fell less than 0.1 percent. Saudi Arabia’s Tadawul All Share Index lost 0.6 percent.

To contact the reporter on this story: Ayesha Daya at adaya1@bloomberg.netClaudia Maedler at cmaedler@bloomberg.net

Last Updated: November 10, 2009 09:31 EST