Dubai’s main stock index soared to the highest level since August 2015, extending year-to-date gains and supported by a jump in property-related shares.
The Dubai Financial Market General Index advanced as much as 2 per cent on Monday after trading resumed following a four-day break, joining a rally in emerging-market stocks. Shares of Emaar Properties PJSC and Emaar Development PJSC led the gains in Dubai along with Emirates NBD Bank PJSC, the city’s biggest bank.
A relatively resilient domestic economy “is reflecting on the stock market, including strength in real estate and tourism”, said Divye Arora, senior portfolio manager at Daman Investments.
Home to the Burj Khalifa, the world’s tallest building that was constructed by Emaar, Dubai relies significantly on its real estate sector, which makes up more than a third of its consumer price index.
Having emerged from the global pandemic as an investment hub and a magnet for tourism, Dubai’s economy is set to grow 3 per cent this year after an estimated 5 per cent in 2022 and 6.2 per cent the year prior, according to S&P Global Ratings.
Dubai’s real estate market has bucked the trend of falling prices amid surging interest rates seen elsewhere. S&P Global Ratings last month upgraded Emaar Properties a notch higher on “strong demand and improved pricing” in the sector.