Dubai: Shares of Emaar Properties and its subsidiaries surged after the company signed an $11.5 billion project with Beijing Daxing International airport.

Emaar Properties said it will jointly implement with Beijing Daxing International Airport a Dh40.5 billion ($11 billion) project, including the five square kilometre land area of the 50 sq km airport. The project which includes residential and leisure facilities will be completed in ten years.

“Bagging a project of this size ($11 billion) is a testimony of the high-quality execution capabilities of Emaar. This could really change the way the company is perceived from being a Dubai-centric real estate player to a world class property developer,” Vrajesh Bhandari, senior portfolio manager at Al Mal Capital, told Gulf News.

Emaar Properties shares surged in the last two hours of trade to end 2.48 per cent higher at Dh4.95. Emaar Malls ended 2.6 per cent higher at Dh1.97. Emaar Development closed 2.77 per cent higher at Dh4.45.

“Through this big deal in China, Emaar’s business backlog would go up and markets have reacted to it positively. However it is at an early stage,” said an analyst who did not wish to be named.

Emaar Properties have underperformed its banking peers in the region. Emaar Properties has remained flat in the past one year, compared to 28 per cent gains in First Abu Dhabi Bank. Other front-line stocks such as Emirates NBD, Dubai Islamic Bank (DIB) were in demand. Emirates NBD closed 0.87 per cent higher at Dh11.55.

The Dubai Financial Market general index closed 1.3 per cent higher at 2,774.87. In other stocks, DP World closed 0.8 per cent higher at Dh16.14. Gulf Finance House closed 0.67 per cent higher at Dh0.899.

The Abu Dhabi Securities Exchange general index closed 1.22 per cent higher at 5,299.08. First Abu Dhabi Bank ended 1.52 per cent higher at Dh16.

Al Dar Properties ended 2.83 per cent higher at Dh2.18. Elsewhere, Saudi Tadawul index closed 0.56 per cent higher at 8,907.46. The Muscat MSM 30 index closed 0.18 per cent lower at 3,763.59.