Dubai stocks advanced the most in more than a month as some investors speculated that a U.S.-led nuclear deal with Iran that will ease sanctions against the Persian nation will help spur investments in the United Arab Emirates.
The DFM General Index rose 2 percent, the sharpest increase since June 9, to close at 4,184.05. It was the second-best gainer among more than 90 indexes tracked globally by Bloomberg at 2:23 p.m. local time. Emaar Properties PJSC, the real estate developer with the biggest weighting on the gauge, climbed the most in more than a month. Dubai Islamic Bank PJSC, the largest Shariah-compliant lender in the U.A.E. ended at the strongest level since December.
“The markets are carrying on the positive momentum from the last week, driven by the prospects of an Iran deal,” Ahmed Shehada, the head of advisory and institutions at NBAD Securities LLC, the brokerage of the country’s biggest bank, said by phone. “Lifting of sanctions would mean Iranian funds flowing into the U.A.E.’s real estate sector and the banks. We are already seeing stocks in both sectors rallying as the U.S. pushes for the deal.”
U.S. cabinet secretaries including John Kerry and Ernest Moniz will testify on July 23 before a key Senate committee on the seven-nation agreement with Iran, which has drawn objections from lawmakers. The U.A.E.’s real estate, transportation and financial sectors are expected to be the beneficiaries of any easing of sanctions, according to Dubai-based Exotix Partners LLP.
Emaar was the top gainer on Dubai’s gauge, climbing 2.3 percent to 8.10 dirhams. Union Properties PJSC, another Dubai-based developer, advanced 5 percent to 1.26 dirhams.