Real estate developers dominate rebound at Gulf Arab markets

Fuelled by encouraging economic data from home, Europe and the United States, Gulf Arab markets entered overall stronger into the fourth quarter of 2012. News that villa prices in Dubai rose by 23 percent year-to-date, as global property advisory firm Jones Lang Lasalle reported earlier Monday, gave real estate share in Dubai a boost, sending the Dubai Financial Market General Index up by 1.91 percent to 1, 608.94 points. The Middle East's first developer, Emaar Properties, surged 3. 45 percent to hit 3.60 dirhams (0.98 U.S. dollars). Amid strong tailwinds at home, the developer continued to expand in the region. Earlier in the day, Emaar said it launched Emaar Square, a " city within a city" development, within its flagship Uptown Cairo project in Egypt. "Emaar Square will feature Egypt's largest open mall, with a retail investment value of 3 billion Egyptian pounds or 500 million U.S. dollars," it said. Since Jan. 1 this year, Emaar shares gained 42 percent in value. Dubai's Arabtec Construction soared 4.76 percent, closing at 2. 64 dirhams (0.71 dollars). Earlier in the day, Arabtec said its subsidiary in Russia signed a contract for the 462.5-meter-high Okhta Tower in Russia's western metropolis of St. Petersburg. The tower is set to host the headquarters of Russia's largest oil and gas firm Gazprom. In addition, Arabtec was awarded with four projects in Qatar and Abu Dhabi valued at 270 million dirhams (73. 4 million dollars). Gulf Arab bourses also benefited from slightly rising oil prices a result of the better-than-expected banking stress-test in Spain and due to a rise in manufacturing in the United States in September, the first advance in that sector in four months. US crude oil prices were valued 0.35 percent higher in late trading at around 92.5 dollars. Consequently, the oil-sensitive Abu Dhabi market ADX advanced by 1.13 percent, ending at 2,634.92 points. Elsewhere in the region, the Saudi market advanced by 0.62 percent to reach 6,882.12 points. Shares of Dar Alarkan Real Estate Development Company gained 1.68 percent. With a year-to- date gain of 7.24 percent, Saudi Arabia has the second best stock market index performance in the Gulf region behind Dubai (up by a whopping 18.88 percent since Jan. 1). The Kuwait Stock market slipped 0.13 percent to close at 5,974. 68 points. Munshaa Real Estate Projects Company was one of the most liquid shares, jumping 6.17 percent to finish Monday trading at 0.043 Kuwaiti dinars (0.15 dollars).