Posted by Bob Brunskill
Dubai shares rose to their highest level in over a week following renewed optimism that Dubai World is closer to resolving its debt restructuring issues.
According to Bloomberg, the DFM General Index climbed 0.9 per cent today (August 26th) to 1,497.48, bringing the weekly gain to 0.4 per cent.
The rise follows an announcement by Dubai World, the state-owned holding company, that it may raise as much as $19.4 billion by selling assets.
"News regarding Dubai World is being taken well by local investors and they are piling in to make a quick turn," Dubai-based Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, told Bloomberg. "The reports are an indication of progress."
Bloomberg also reported from an unnamed source that Dubai World would probably get $10.4 billion if it sold the assets now and as much as $19.4 billion in eight years.
Meanwhile, it was recently reported that Dubai's department of finance is to conduct "a series of non-deal fixed-income investor meetings" in Asia, beginning today.