Top performing UAE shares during 2013

The high-fliers on the Dubai Financial Market and Abu Dhabi Securities Exchange.

Union Properties (UP) had the highest percentage rise of any Dubai listed stock in 2013. The shares ended the year up 201% at Dh1.19 each, after starting the year at 39.5 fils.

The year saw the developer continue to tackle its debt woes, with a successful debt renegotiation deal with Abu Dhabi Commercial Bank in April and the sale of a further two hotels.

UP benefited from Dubai’s newly resurgent property market and the city’s award of the Expo 2020. The company announced plans in September to develop six new projects at Motor City worth Dh1.5bn during the next three years.

Dubai Investments

Shares in Dubai Investments (DIC) ended the year up 192 per cent at Dh2.49 each.

The local venture capital investor, which hold stakes in around 40 businesses, has enjoyed a growth in profits as the UAE’s economy recovers. The company announced profit of Dh161m for the third quarter of 2013, a year on year increase of 98 per cent.

DIC said in December that its exports for 2012 grew to Dh600m, a growth of 129 over five years. The company’s glass exports grew to more than Dh200m in 2012, with robust export of other products such as aluminium, pharmaceuticals, steel and rubber.

Dubai Islamic Bank

Dubai Islamic Bank (DIB) shares ended 2013 at Dh5.36 each, a gain of 166 per cent.

The emirate’s largest Sharia-compliant lender benefitted from a sector-wide increase in lending. DIB increased its shareholding in the property lender Tamweel to close to 90 per cent, paying off its bilateral facilities in September.

In December, the bank announced plans to increase the percentage of its share capital available to foreign investors to 25 per cent from 15 per cent. This is in line with other local institutions looking to attract international funds in the run-up to the UAE’s upgrade to emerging-market status.

Etisalat

Etisalat is the second most heavily weighted stock on the Abu Dhabi index, accounting for 16.4 per cent of the index’s weight (only First Gulf Bank counts for more, at 27.3 per cent).

The telco’s shares surged by 161 per cent during 2013, ending the year at Dh 11.70 each.

The operator announced its first overseas acquisition in five years in November, agreeing to pay $5.7bn for Vivendi’s 53 per cent stake in Maroc Telecom after protracted negotiations with the French conglomerate.

At home, the introduction of mobile number portability could affect the operator’s subscriber base in 2014.

First Gulf Bank

First Gulf Bank was the top performer on the Abu Dhabi stock exchange, capping an impressive year for the bank. The company’s shares closed the year at Dh18.80 each, a year on year increase of 62 per cent.

The bank reported 13 per cent year on year growth in third quarter profits, on the back of increased consumer and business lending.

FGB announced the full repayment of Dh4.5bn of government support funds in March, acquired the consumer finance company Dubai First in June, and increased its stake in the Islamic finance provider Aseel to 100 per cent from 40 per cent in October.

ADCB

Abu Dhabi Commercial Bank, the UAE’s fourth largest bank, saw its shares increase by 118 per cent in 2013, closing the year at Dh6.54 each. Confidence in the stock was boosted by a share buyback programme approved by the Central Bank in January.

The bank announced in June the full repayment of Dh6.6bn of loans to the Ministry of Finance, partly funded by a $750m Tier 2 bond in February. Third-quarter profit rose 49 per cent year on year to Dh874m off the back of surging non-interest income and lower impairment allowances.