Dubai shares gained for the second time this week, led by Emaar Properties PJSC and Dubai Financial Market PJSC, as oil rose and investors speculated yesterday’s drop was overdone given the prospects for economic growth.

Emaar, the United Arab Emirates’ biggest developer, surged 6.2 percent, recovering most of yesterday’s losses. Dubai Financial Market, the region’s only stock exchange to sell shares to the public, also climbed. The Dubai Financial Market General Index rose 3 percent, bouncing back from yesterday’s 5 percent drop, to 2,137.8.

Crude oil rose for a third day, bringing the increase this week to 4.3 percent and climbing above $80 a barrel. Dubai’s market has fluctuated this week, dropping or gaining at least 5 percent each day, until now. Asian stocks fell in the first two trading days of the week on concern the withdrawal of stimulus measures will cause the global recovery to falter.

Stocks are “firmer today because the crude oil market refuses to confirm that this is a broader based correction in all assets,” said Akram Annous, deputy fund manager at Al Mal Capital PSC in Dubai.

IMF

Economic growth in the U.A.E. will probably slow to 1.3 percent this year, dragged down by the global financial crisis, Minister of Economy Sultan Bin Saeed al-Mansouri said Oct. 21. The economy expanded 7.4 percent last year. Last month, the International Monetary Fund increased its 2010 economic growth forecast for the oil-rich Middle East to 4.2 percent from 3.7 percent after crude prices rose.

Emaar jumped to 4.30 dirhams after declining 7.3 percent yesterday. Dubai Financial Market, down 9.4 percent yesterday, added 5.7 percent to 2.23 dirhams.

Saudi Arabia’s Tadawul All Share Index climbed 1 percent to 6,343.12. The Kuwait Stock Exchange Index increased 1.2 percent, its biggest one-day gain since Sept. 27. Qatar’s DSM 20 Index advanced 0.4 percent, Oman’s MSM30 Index and Abu Dhabi’s index rose 0.1 percent. Bahrain’s measure fell 0.2 percent.