Posted by Neil King
Dubai's stock market reached a three-month high yesterday (March 28th), reflecting rising investor confidence following the issuance of a new debt restructuring plan for the Dubai World real estate development.
The Dubai index rose 1.9 per cent to 1,881 points - its highest finish since December 16th, Arab News reported.
Meanwhile, Abu Dhabi's stock market also benefited from growing investor activity, hitting a four-month peak following a rise of 0.9 per cent to 2,929 points.
"We're waiting for more details (on Dubai World), but it seems like we now have a solution that most parties will be happy with," said Marwan Shurrab, vice president and chief trader at Gulfmena Alternative Investments.
The Dubai government has said it will spend up to $9.5 billion restructuring the Dubai World conglomerate.
In addition, Keith Edwards, head of asset management at Doha-based investment company the First Investor, noted that as the global economy improves, UAE stocks exposed to world trade will benefit.
Announcing the restructuring plan last week, Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the government's Dubai Financial Support Fund, said that Dubai World would be a key contributor to the economic future of Dubai and the wider UAE.