Dubai Shares Advance on Speculation Developers May Win Contracts

06/12/2010 00:00 AST

Dubai’s shares rose to the highest in almost two weeks, led by construction and real-estate companies, on speculation they may benefit from Qatar’s infrastructure spending for the 2022 soccer World Cup.

Arabtec Holding PJSC, the biggest construction company in the United Arab Emirates, surged the most since June. Emaar Properties PJSC rose 2.2 percent after saying it will pursue development contracts in Qatar. The Dubai Financial Market General Index increased 1.1 percent to 1,705.72, the highest intraday level since Nov. 23, at 12:16 p.m. in the emirate. Dubai’s market was closed since Dec. 1 for holidays. Qatar’s QE Index rose 0.6 percent after soaring 3.6 percent yesterday.

“Companies that have an on the ground presence in Qatar, especially in construction infrastructure related spaces” are gaining, said Shehzad Janab, head of asset management at Dubai- based Daman Investments PSC. “What this World Cup win means is that spending will be accelerated with a new impetus” by Qatar.

Qatar will be the first nation from the Middle East to hold the world’s most-watched sporting event. Russia was chosen to host the 2018 tournament. The emirate plans to spend $4 billion on stadium construction and refurbishment program, and build a rail and metro network, costing more than $25 billion.

Arabtec soared 8.1 percent, the most since June 20, to 2.01 dirhams. Arabtec Construction, a unit of the builder, in June won a 520 million-riyal ($143 million) contract to build the World Trade Center Tower in Qatar.

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Bloomberg