Abu Dhabi: Real estate major Emaar Properties and construction major Arabtec led the gainers on the Dubai Financial Market yesterday after an announcement was made on Saturday that Mohammad Bin Rashid City will be built as a “new city within Dubai”, focused on the emirate’s key growth sectors that include retail and tourism. The proposed new city will feature the world’s biggest shopping mall and a park larger than London’s Hyde Park.
Market participants took long positions on Emaar in the hope the bulk of the new projects in the new city would be awarded to Emaar. The Dubai Financial Market (DFM) index rose one third of a per cent yesterday with the DFM index regaining the critical 1,600 support level, an indication that the market may rally in the days ahead, should the global macro-economic indicators not worsen.
As many as 30.34 million shares of Emaar cumulatively valued at around Dh113.47 million were traded, its stock closing 2.19 per cent higher at Dh3.73. Arabtec’s shares jumped 1.31 per cent to close at Dh2.32.
“The real market in Dubai over the past few months has already shown positive trends. Emaar is already a well recognised developer in the region and has built numerous quality projects. Projects in the new city would further enhance its position,” Elaine Jones of Asteco Property Management Company told Gulf News.
Emaar’s revenue from apartments sales more than tripled in the fiscal third quarter, helping Dubai’s largest developer overcome a sharp decline in the sale of commercial units. Revenue from sales of condominiums in the third-quarter more than tripled to Dh567 million from Dh183 million in the July-September quarter of 2011.