Deyaar Development PJSC, the second-largest publicly traded property company in Dubai, gained to the highest in more than five years on growing investor confidence in the emirate’s real estate recovery.
Shares of the company controlled by Dubai Islamic Bank PJSC surged 10 percent to 1.08 dirhams, the highest since November 2008, at the close in the emirate. Dubai Islamic rose 1.7 percent as the Dubai Financial Market General Index advanced 2 percent.
Deyaar’s shares are benefiting from an economic recovery in Dubai, which in November won the right to host the World Expo 2020, after profit tumbled when the property market imploded in 2008. Home prices may rise 35 percent to 40 percent this year, Sultan Bin Mejren, the head of the emirate’s Land Department said in an interview on Jan. 6.
“Investor confidence on an improved outlook for the real estate sector in the United Arab Emirates, continues to solidify post Expo,” Amer Khan, the senior executive officer at Dubai-based Shuaa Capital PSC, said in e-mailed comments to Bloomberg News. Deyaar’s move is driven by retail investors, he said.
The emirate may invest as much as 6 billion euros ($8.2 billion) before the world fair, Sheikh Ahmed bin Saeed Al Maktoum, head of Dubai’s Supreme Fiscal Committee, said Nov. 17.
Deyaar shares, which surged more than 180 percent in 2013, have advanced 6.9 percent this year. Dubai’s benchmark index, which more than doubled last year, has increased 2.2 percent this year.