Dubai Shares Rise, End 2-Day Losing Streak on Europe, Dubai Debt

Dubai shares rose for the first time in three days on bets European leaders will step up efforts to fight the region’s debt crisis and after a Dubai Holding LLC unit said it will meet a debt repayment in February.

Emaar Properties PJSC (EMAAR), the developer of the world’s tallest skyscraper, climbed 1.1 percent after tumbling 3.6 percent yesterday, while Drake & Scull International (DSI) PJSC advanced for the second time this week. The DFM General Index (DFMGI) gained 0.2 percent to 1,386.02 at 11:38 a.m. in Dubai, paring the drop for the year to 15 percent. The MSCI Emerging Markets Index (MXEF) jumped 1 percent.

German Finance Minister Wolfgang Schaeuble said Standard & Poor’s move to place 15 euro nations, including Germany and France, on review for possible credit downgrades will help force European leaders to ratchet up efforts to resolve the debt crisis at their summit in Brussels from Dec. 8 to 9. The ratings company said cuts would depend on the meeting’s outcome. The Euro STOXX 50 Future advanced 1.3 percent.

“Equity markets will remain highly correlated to international news and it seems that investors are expecting a big announcement from European countries in the coming days,” said Tariq Qaqish, deputy head of asset management at Dubai- based Al Mal Capital. “The news of Dubai Holding paying its bonds on time has prompted positive sentiment for investors questioning the ability of Dubai entities to meet their obligations.”

Paying Debt

Dubai Holding Commercial Operations Group LLC, a real- estate and hospitality company owned by Dubai’s ruler, said yesterday it will repay a $500 million bond from its cash flow when the notes mature in February. The announcement came after Moody’s Investors Service said Dubai and its state-owned non- financial companies have outstanding debt of $101.5 billion and may need support to meet these obligations.

Crude oil for January delivery rose as much as 0.6 percent to $101.85 a barrel. Gulf Arab oil exporters, including the United Arab Emirates and Qatar, supply about a fifth of the world’s oil.

Emaar advanced to 2.75 dirhams and Drake & Scull, a Dubai- based construction company, rose 1.7 percent to 82.4 fils.

Qatar’s QE Index (DSM) gained 0.2 percent and the Bloomberg GCC 200 Index (BGCC200) increased less than 0.1 percent. Bahrain’s BB All Share Index (BHSEASI) and Oman’s measure (KWSEIDX) fell 0.1 percent. Kuwait’s measure and Abu Dhabi’s ADX General Index (ADSMI) were little changed.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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