Dubai’s shares reach their highest level in almost 10 years as Emaar Properties rises; Gulf markets see small gains

Dubai’s shares reach their highest level in almost 10 years as Emaar Properties rises; Gulf markets see small gains

Dubai’s stock market reached its highest point in almost 10 years on Monday, driven by strong growth in the real estate and finance sectors. Meanwhile, most other Gulf markets saw small gains as investors awaited this week’s US Federal Reserve meeting.

Dubai Stocks

Dubai’s main stock index (DFMGI) jumped 4.5% to reach 5,048 points, its highest level since 2014. Dubai’s biggest bank, Emirates NBD, rose 9.3%, and property giant Emaar Properties surged 14.7%, its best performance in nearly 17 years.

Emaar’s stock increased after the company announced it would pay 100% of its share capital as dividends in 2024 and future years, totaling $2.4 billion (AED 8.8 billion).
Investor confidence also grew after HSBC raised Emaar’s stock price target from $2.9 (AED 10.8) to $3.6 (AED 13.2).

Gulf Markets

• Saudi Arabia: The main index (TASI) rose 0.3%, driven by gains in healthcare, utilities, and IT.
  • ACWA Power gained 3.2%.
  • BATIC Investments climbed 4.1% after signing a deal with Dubai’s Parkin to combine UAE technology with BATIC’s Saudi network, including its subsidiary, Smart City Solutions (SCSC).
• Abu Dhabi: The main index was up 0.2%, led by:
  • Alpha Dhabi Holding, rising 1.1%.
  • Aldar Properties, up 4.9%.
• Qatar: The main index edged up 0.1%, with most sectors performing well.
  • Industries Qatar and Doha Bank both gained 0.5%.
  • Doha Bank’s increase followed news of its memorandum of understanding with Al Khaleej Takaful Insurance to acquire Sharq Insurance.

Fed Decision

The Federal Reserve is expected to lower interest rates by 0.25% at its meeting on December 17-18. This move, along with new forecasts for future rate cuts in 2025 and beyond, could impact monetary policies in Gulf countries since their currencies are closely tied to the US dollar.

The chances of a rate cut increased after recent data showed the US job market is slowing but still strong. This, along with 2.8% economic growth last quarter, has boosted confidence in steady economic progress.

According to a Reuters poll, US economic growth is expected to slow to 2.1% in 2025 and 2% in 2026, but it will still be higher than the Fed’s estimate of 1.8% for growth that doesn’t fuel inflation.

Published: 17th December 2024

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