June 28 (Bloomberg) -- Dubai’s shares advanced for the first time in more than a week as companies in the emirate raise funds and as oil prices rose this week, boosting the outlook for economic growth.
Union Properties PJSC, a Dubai-based developer, rallied 5.9 percent. Dubai Investments PJSC, which owns stakes in 40 businesses, rose the most in more than a month. The DFM General Index increased 0.2 percent, set for the biggest gain since June 19, to 1,454.85 at 12:43 p.m. in the emirate. The measure fell 1.8 percent the previous six trading days, trimming the gain so far this year to 7.5 percent. The Bloomberg GCC 200 Index slipped 0.2 percent and Oman’s shares climbed.
“Domestically, we are seeing companies’ ability either to restructure or raise funds as positive sign for the economy on the medium term,” said Tariq Qaqish, Dubai-based deputy head of asset management at Al Mal Capital. Shares are gaining after “a combination of international markets’ positive move and a projected recovery in oil prices.”
Dubai-based Majid Al Futtaim Holding LLC, an operator of malls and hotels in the Middle East, raised $500 million from the sale of seven-year bonds, six bankers familiar with the transaction said yesterday. This is the latest sale by a company in Dubai, which avoided default in 2009 and has recovered this year as state-linked companies paid and refinanced maturing debt. Tamweel PJSC’s Islamic bond climbed to a record yesterday as the Dubai-based mortgage provider controlled by Dubai Islamic Bank PJSC plans its second sukuk sale this year, boosted by an increase in property sales.
Shares in Dubai have fallen more than 1 percent this month amid a drop in Persian Gulf equities linked to weaker oil prices, with Brent crude set for its worst quarterly performance since the final three months of 2008. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia, supply about a fifth of the world’s oil.
Crude for August delivery increased as much as 0.6 percent to $80.70 a barrel on the New York Mercantile Exchange today before paring the gain. The S&P 500 in the U.S. rose yesterday after orders for durable goods and the number of Americans signing contracts to buy an existing home rebounded in May.
Dubai, the second-largest of seven emirates that make up the United Arab Emirates, relies on trade, tourism and property for growth. Economic growth in the city home to the world’s tallest tower may reach as much as 5 percent in 2012 from 3.4 percent last year, Al Ittihad reported this month, citing the director general of the emirate’s chamber of commerce and industry, Hamad Mubarak Buamim.
Union Properties was set for the biggest gain since May 29 after rising to 39.7 fils. Dubai Investments climbed as much as 3.1 percent to 70 fils, before trimming gains to 68 fils.
Elsewhere in the Persian Gulf region, Oman’s MSM30 Index gained 0.7 percent. Kuwait’s gauge and Abu Dhabi’s ADX General Index lost 1 percent. Measures in Qatar and Bahrain were little changed. Saudi Arabia’s market was closed for the weekend.
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