Riyadh : Saudi Arabian stocks rose to the highest since 2008 yesterday after Dubai said it will support the restructuring of state-owned Dubai World with $9.5 billion (Dh34.8 billion).
The Tadawul All Share Index increased 0.3 per cent to 6,777.74 as of 11.40am in Riyadh, rising for a third day. A close at this level would be the highest since October 2008. Saudi Basic Industries Corp and Al Rajhi Bank led the gains.
"This is just the impact of Dubai, which is reinforcing healthy sentiment at the moment," Paul Gamble, head of research at Riyadh-based Jadwa Investment, said in a tele-phone interview.
The additional funds for Dubai World double to $20 billion the amount the government paid to the emirate's holding company. Dubai World said in November it would seek to delay repaying debt until May, sparking a plunge in developing-nation stocks and increasing the cost to protect against a default by Dubai.
Sabic rise
Saudi Basic Industries, the world's largest petrochemical maker, climbed 0.8 per cent to 98.75 riyals yesterday. Al Rajhi, the biggest bank in the kingdom by market value, gained 0.6 per cent to 82.7 riyals.
