Iraqi contract boosts Dubai's Emaar

Markets Wrap: Investors buy up shares in Dubai's Emaar Properties after Iraq agreements and speculation of strong third quarter results.

Emaar's shares gained 1.9 per cent to Dh3.73. Satish Kumar / The National

Emaar Properties rose to the highest level in almost two years after the region's biggest developer announced it intended to build projects in Iraq.

Emaar's shares gained 1.9 per cent to Dh3.73, the highest level since December 2010, on the Dubai bourse yesterday. The developer signed an agreement with Iraq's construction and housing ministry on Thursday to develop property projects.

"The latest development is definitely good for Emaar, it's an expansion of their current geography," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital. "But we need to understand the mechanism and the margins to determine how profitable it will be for the company."

Analysts expect the company to post an 18 per cent increase in third-quarter profit, Bloomberg reported. The Dubai Financial Market General Index closed up 1 per cent to 1,644.28 points.

In Abu Dhabi, Aldar Properties, the developer behind Yas Island, gained 0.7 per cent to Dh1.34. Sorouh Real Estate, the developer behind Reem Island's Sun & Sky Towers, lost 0.7 per cent to Dh1.25.

The Abu Dhabi Securities Exchange General Index was little changed, down 0.08 per cent, to 2,647.89.

Elsewhere in the region: Kuwait's measure added 0.1 per cent to 6,005.84; Bahrain's index lost 0.6 per cent to 1,070.59; Oman's MSM 30 Index was little changed, up 0.07 per cent, to 5,650.42; Qatar's QE Index gained 0.2 per cent to 8,502.25.

The Saudi Tadawul All-Share Index fell 0.36 per cent to 6,863.30.