Arabtec, the United Arab Emirates’ biggest construction company, rose for the third time in four days. Dubai Islamic Bank PJSC (DIB), the U.A.E. biggest bank complying with Shariah rules, advanced 1.5 percent. The DFM General Index (DFMGI) climbed 0.4 percent to 1,678.74, the highest since April 5, at the 2 p.m. close in Dubai, trimming the drop this week to 0.5 percent. The Bloomberg GCC 200 Index (BGCC200) increased 0.2 percent.
Dubai-based Arabtec, a builder of the world’s tallest skyscraper, nominated Aabar Investments PJSC (AABAR)’s Chairman Khadem Alqubaisi and Chief Executive Officer Mohamed Al-Husseiny to its board. Abu Dhabi state-owned Aabar, which holds stakes in Daimler AG (DAI) and UniCredit SpA (UCG), raised its stake in Arabtec to 10.45 percent this year.
“The profile of who is taking over is most important,” said Yazan Abdeen, who helps oversee about $250 million as ING Investment Management’s Middle East and North Africa fund manager in Dubai. “Aabar has the liquidity to cushion Arabtec for contract bidding, it can open doors for Arabtec to get more contracts, and can help Arabtec get receivables.”
Arabtec shareholders will consider the board recommendations, which also include Aabar board members Mohamed Al Fahim and Mohamed Al Mehairi, at a meeting on April 28, the company said.
Arabtec has surged 117 percent this year on speculation investors are accumulating the stock amid bets it will benefit from regional infrastructure spending. That compares with a 24 percent gain for Dubai’s benchmark index.
Abu Dhabi, home to about 7 percent of the world’s proven oil reserves, is trying to diversify its oil-based economy. The U.A.E. capital said this year it plans to resume stalled projects including branches of the Louvre and Guggenheim museums.
In 2010, Aabar canceled a plan to buy most of Arabtec for an estimated $1.74 billion. It had offered to buy 70 percent of Arabtec through the purchase of bonds that would be exchanged for shares at 2.3 dirhams. Arabtec shares rose 0.9 percent to 3.45 dirhams. Dubai Islamic climbed the most since March 15 to 2.03 dirhams.
The Kuwaiti (KWSEIDX) gauge rose 0.4 percent and Bahrain’s BB All Share Index (BHSEASI) increased 0.2 percent. Qatar’s QE Index (DSM) gained 0.3 percent. Oman’s MSM 30 Index (MSM30) rose 1.3 percent, while Abu Dhabi’s ADX General Index (ADSMI) fell 0.4 percent. Saudi Arabia (SABIC)’s market was closed for the weekend.
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