Dubai shares advanced the most in more than three weeks after Dubai Holding Commercial Operations Group LLC, a real estate and hospitality group, received a one-month extension to pay a $555 million loan.
Aramex PJSC, the United Arab Emirates-based courier company, jumped 1.5 percent and Dubai Islamic Bank PJSC, the biggest Shariah-compliant lender in the country, rose to the highest in more than a week. The DFM General Index gained 1.1 percent, the most since Nov. 9, to 1,687.92 at the 2 p.m. close in Dubai. U.A.E. markets will close tomorrow through Dec. 5 to mark the country’s National Day and an Islamic holiday.
“Positive sentiment prevailed in the market” prompted by “the smooth sailing of the debt restructuring of Dubai Holding,” said Nabil Farhat, partner at Abu Dhabi-based Al Fajer Securities. The emirate’s privatization plan also pushed up the index, Farhat said.
The Dubai Holding LLC unit today said it received an extension on a revolving credit line until Dec. 30. “The extension is required to finalize a new long-term facility,” it said in a statement to Nasdaq Dubai. Dubai Holding Commercial in September received a two-month extension on the loan.
Some of Dubai’s state-controlled companies are struggling to refinance debt after credit markets froze amid the global economic crisis. Dubai World, one of the emirate’s three main state-owned holding companies, secured approval from all its creditors for its $24.9 billion debt restructuring, a company official said in October.
The debt-laden emirate plans to sell shares of some of the emirate’s large companies, Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said on Nov. 28. The Dubai government has injected $2 billion into Dubai Holding over the last 12 months to support its restructuring, Mohammed Ibrahim al-Shaibani, director general of the Dubai ruler’s court said at a conference that day.
Crude oil for January delivery rose as much as 1.8 percent to $85.59 a barrel in electronic trading on the New York Mercantile Exchange. The six Gulf Arab nations, including Saudi Arabia and the U.A.E., supply about a fifth of the world’s oil.
Aramex jumped to 2.03 dirhams, the highest since Nov. 25. Dubai Islamic gained 2.3 percent to 2.25 dirhams, the highest since Nov. 22.
The Bloomberg GCC 200 Index rose 0.2 percent and Abu Dhabi’s measure increased 0.6 percent.
The Tadawul All Share Index gained 0.4 percent and Oman’s benchmark stock index advanced 0.7 percent. Qatar’s QE Index slipped 0.2 percent and Bahrain’s All Share Index decreased 0.3 percent. Kuwait’s gauge retreated 0.6 percent.