Dubai Shares Gain as Nakheel Gets State Funds to Repay Bonds; Emaar Rises

Dubai shares advanced for a second day as Nakheel PJSC, the developer of palm-shaped islands off the city’s coast, said it received funds from the Dubai government to repay Islamic bonds maturing in January.

Emaar Properties PJSC, the United Arab Emirates biggest property developer, gained the most since Nov. 9. Arabtec Holding Co., the biggest construction company in the U.A.E. by market value, gained 1.6 percent. The DFM General Index advanced 0.5 percent to 1,630.52 at the 2 p.m. close in the emirate. The measure retreated 9.6 percent this year, its worst annual performance since 2008.

“We are seeing support from the government side, and that gives confidence to investors,” said Abdel-Rahman Kharma, senior equity trader at Naeem Brokerage in Dubai. “That added to the positive sentiment toward the Nakheel situation.”

Nakheel, controlled by state-owned Dubai World, said it had received money from the Dubai Financial Support Fund to pay $816.3 million in principal and $10.3 million in profit on the 2.75 percent sukuk due Jan. 16. Bondholders will also receive an additional payment of $45 million.

“Following the repayment, Nakheel would have repaid all previously issued sukuk and requests Nasdaq Dubai to delist them,” the company said today.

The developer said Dec. 29 it reached an agreement with 91 percent of its trade creditors as it seeks to delay payments on at least $10.5 billion of loans and bills. Dubai World, one of the emirate’s three main holding companies, in October gained approval from all its creditors to change terms on $24.9 billion of loans.

Emaar Rises

Emaar climbed 2.6 percent to 3.55 dirhams. The developer said a unit is collaborating with Emirates Healthcare Ltd. which will operate clinics in Dubai. Arabtec rose to 1.97 dirhams, the highest since Dec. 21.

The Bloomberg GCC 200 Index of companies in the region advanced 0.1 percent, taking its rally this year to 13 percent. Abu Dhabi’s ADX General Index increased 0.7 percent. Qatar’s gauge advanced 0.2 percent, while Kuwait’s SE Price Index retreated 0.1 percent. Oman’s MSM30 Index rose 0.1 percent and Bahrain’s measure added 0.3 percent. Saudi Arabia’s market is closed for the weekend.

To contact the reporters on this story: Zahraa Alkhalisi in Abu Dhabi at zalkhalisi@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.