Tamweel shares fall after fraud probe

Dubai: Tamweel PJSC shares dropped a second day on Sunday after Dubai Police said a former chief executive officer of the company is under investigation for alleged financial wrongdoing.

Two senior Dubai executives, Istithmar vice-chairman Adel Al Shirawi and chief financial officer Feras Kalthoum, are under investigation over alleged financial irregularities at their former company, Tamweel.

The investigations are one of the strongest signs yet the government is cracking down against corruption in the corporate sector.

In the region, Saudi Arabia and Omani shares advanced on speculation inflation may slow after the dollar climbed to a six-month high against the euro.

Samba Financial Group, Saudi Arabia's second-largest bank by market value, rose for a sixth day. Bank Muscat SAOG, Oman's largest lender, climbed for a fourth day.

"The dollar's rise will help stem off inflation, which is plaguing the whole region," said Mohamed Dwaikat, a senior broker at Al Fajer Securities.

"Lower inflation will help companies retain higher margins of profitability as the cost of imports falls and it may attract more investors to the stock markets,'' he said.

Saudi Arabia's Tadawul All Share Index gained 0.9 percent to 8,404.88 at 12:18 p.m. in Riyadh, bringing the five-day surge to 6.6 percent.

The Muscat Securities Market 30 Index climbed 1.3 per cent to 10,431.69, the highest close since August 5.

Five of the six Gulf countries peg their currencies to the US dollar.

Inflation is at record levels in the region as the weaker dollar and high commodity prices make imports more expensive and as oil-fueled economic growth creates shortages of real estate and labour.