Dubai Shares Climb to 2-Month High on Debt Plan, Saudi Arabia

Dubai shares surged to the highest close since January on speculation Dubai World’s restructuring proposal will appease investors and after Saudi Arabia’s benchmark index rose.

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Dubai Financial Market PJSC rose 6.3 percent as Al Khaleej reported shares listed on Nasdaq Dubai may trade on the exchange in a few weeks. Emaar Properties PJSC, the United Arab Emirates’ biggest developer, rose for a second day. Emirates NBD PJSC, the country’s largest bank by assets, gained the most in more than a month. The Dubai Financial Market General Index increased 2.8 percent to 1,774.43, the highest level since Jan. 11. The ADX General Index advanced 0.9 percent.

Dubai’s benchmark index has gained 11 percent this month as investors expect satisfactory repayment terms for state-owned holding company Dubai World’s $26 billion of debt. The company will announce a “fair” proposal “very soon,” Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said in an interview last week.

“It appears markets are anticipating a positive surprise,” said Sameh Hassan, director of research at Rasmala Investment Bank Ltd.

The emirate isn’t likely to need more central bank aid, U.A.E. Central Bank Governor Sultan bin Nasser al-Suwaidi has said. Dubai World, one of the emirate’s three main state-owned business groups, said Nov. 25 it would seek to delay repaying debt until at least May 30.

Saudi Stocks

Saudi Arabia’s Tadawul All Share Index gained for a fourth day, climbing 0.3 percent to 6,722.04, the highest close since October 2008. The kingdom is the Arab region’s biggest economy and holder of 21 percent of the world’s proven oil reserves, according to data compiled by Bloomberg.

“When the Saudi Arabian market goes up, investors see that as a bellwether for our market as well,” said Ian Munro, head of research at MAC Capital Advisors in Dubai.

Dubai Financial Market climbed to 1.85 dirhams. Emaar gained 4.9 percent to 3.85 dirhams. Emirates NBD rose 4.6 percent to 2.75 dirhams, the highest close since Jan. 13.

Oman’s MSM30 Index advanced 0.7 percent. Bahrain’s gauge gained 0.4 percent, while Qatar’s measure lost less than 0.1 percent. Kuwait Stock Exchange Index retreated 0.2 percent.

Zain rose 1.5 percent to 1,380 fils, the highest level since March 15. Bharti Airtel Ltd., the Indian phone company planning a $9 billion purchase of Zain’s African wireless assets, intends to make a formal offer this week after Bharti’s board yesterday approved the bid, according to two people with knowledge of the negotiations.

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