Dubai shares rebounded strongly, driven by a surge in Emaar Properties after the country's biggest developer scrapped plans to merge with three struggling state-controlled property companies.
Market confidence was lifted by the merger cancellation, which analysts said indicated a distinction between strong companies such as Emaar and those with potential financial problems.
Attempting to reassure investors further, Abdulrahman al Saleh, the director of Dubai's Department of Finance, said yesterday that the emirate would emerge from the financial crisis as a "winner".
The Dubai Financial Market (DFM) General Index posted its largest gain in 10 months to close 7 per cent higher and helped to trim the heavy losses of the previous three days.
Emaar, seen as a market bellwether, rallied 15 per cent, its largest gain in 13 months, after fluctuating wildly in earlier trading. Emaar's shares had shed 13 per cent this week before its recovery.
"We are in an oversold position and when the market goes down heavily in the short-term you expect a bounce back driven by investors," said Fadi al Said, head of regional equities at ING Investment Management Middle East. "However, you need a trigger and the trigger was the Emaar announcement."
The Abu Dhabi Securities Exchange General Index also recovered from three days of heavy selling to close 1.4 per cent higher yesterday.
About 22 per cent of the value of Dubai's benchmark stock index had been erased since the Dubai Government announced on November 25 that it was seeking a restructuring of the debt of state-controlled conglomerate Dubai World. Dubai World is seeking to restructure US$26 billion (Dh95.5bn) of debt including a $4bn sukuk repayment by its property arm Nakheel on Monday.
Since the announcement, leading government-related entities in Dubai have been hit by ratings downgrades amid uncertainty about the level of government support for the entities. The concern also spread to the capital, with seven prominent Abu Dhabi companies placed under review for possible downgrade by Moody's Investor Service on Tuesday.
Emaar, the emirate's flagship developer set to open the world's tallest tower in Dubai next month, said late on Wednesday it had cancelled a planned merger with Dubai Properties, Sama Dubai and Tatweer, property units belonging to Dubai Holding, another state-owned conglomerate. The three units have suffered as a result of steep falls in the country's property market.
Emaar's decision was an indication that it would have been damaging for the company's value, analysts at Credit Suisse said in a research note.
"The news may also reflect an admission by the Government that there are additional bad assets outside of Dubai World," Credit Suisse said.
Emaar shareholders were relieved by the scrapping of the merger plans, said Roy Cherry, vice president of research, real estate and construction at Shuaa Capital.
"This comes as good news and, contrary to popular belief, the outcome was not influenced by the problems in Dubai Inc," he said. Emaar ended the day at Dh2.94, while the construction company Arabtec Holding rose 6.9 per cent to Dh1.85.
While market attention continues to focus on Dubai's estimated $85bn debt load, Emirates Airline, one of the major companies in the emirate, yesterday announced it had raised $1.13bn in financing from lenders for six new A380 aircraft.
The carrier remained in a secure financial position despite the global financial crisis, said Tim Clark, the airline's president.
Meanwhile, the Dubai Electricity and Water Authority (DEWA) said yesterday it was not facing debt default and its lenders confirmed their support for the utility company. It follows a research note from the ratings agency Standard & Poor's, which said DEWA might have to repay $2bn of bonds this month, ahead of maturity, after credit rating downgrades prompted a payment acceleration clause in the securities' documentation.
tarnold@thenational.ae
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Results
STAGE
1 . Filippo Ganna (Ineos) - 0:13:56
2. Stefan Bissegger (Education-Nippo) - 0:00:14
3. Mikkel Bjerg (UAE Team Emirates) - 0:00:21
4. Tadej Pogacar (UAE Team Emirates) - 0:00:24
5. Luis Leon Sanchez (Astana) - 0:00:30
GENERAL CLASSIFICATION
1. Tadej Pogacar (UAE Team Emirates) - 4:00:05
2. Joao Almeida (QuickStep) - 0:00:05
3. Mattia Cattaneo (QuickStep) - 0:00:18
4. Chris Harper (Jumbo-Visma) - 0:00:33
5. Adam Yates (Ineos) - 0:00:39
RESULTS
Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari
Copa del Rey
Semi-final, first leg
Barcelona 1 (Malcom 57')
Real Madrid (Vazquez 6')
Second leg, February 27
Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
'Jurassic%20World%20Dominion'
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The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
Essentials
The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing.
Empires%20of%20the%20Steppes%3A%20A%20History%20of%20the%20Nomadic%20Tribes%20Who%20Shaped%20Civilization
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EKenneth%20W%20Harl%3Cstrong%3E%3Cbr%3EPublisher%3A%20%3C%2Fstrong%3EHanover%20Square%20Press%3Cstrong%3E%3Cbr%3EPages%3A%20%3C%2Fstrong%3E576%3C%2Fp%3E%0A
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
