Text size:

  • Small
  • Normal
  • Large

Emaar shares heading up towards the top floor

What's up Emaar shares rose 5 per cent yesterday to Dh3.81. In the past three weeks, Emaar has risen more than 30 per cent - and with strong volumes.

The lifts in Burj Khalifa, developed by Emaar Properties as the tallest tower in the world, may have stalled but the company's shares are certainly on the rise. Emaar shares rose 5 per cent yesterday to Dh3.81. In the past three weeks, Emaar has risen more than 30 per cent - and with strong volumes. The catalyst, analysts say, is not so much company fundamentals as a shift in investor outlook towards Dubai in general.

When the financial crisis hit Dubai's property sector in late 2008, and job cuts ensued, a mass exodus of expatriate workers was expected. As the country's largest developer, Emaar was expected to take a major blow and the stock plunged as a result. Instead, Dubai's population grew to 1.77 million, up 7.6 per cent in the past year, the Government announced on Monday. The surge is due to an "overspill" of people from emirates such as Sharjah and Abu Dhabi, who have moved to Dubai to capitalise on cheaper rents.

Majed Azzam, a property analyst at Al Futtaim HC Securities, said the population rise was supported by other data suggesting the number of mobile phone subscribers rose last year, as did water and electricity consumption. "If you look at the supporting evidence in Dubai, it is likely that population did grow; this is good for the real estate sector," he said. Mr Azzam said the stabilisation of rental prices since November and a strong gain last month were indications that there was still considerable property demand.

In addition, Emaar has benefited from the speculation in recent weeks that Dubai World's proposed debt restructuring will be resolved soon, and in a fashion that does not create major ripple effects through the emirate's economy. The latest contribution to that growing perception was a report in The National yesterday that Dubai World representatives had put forward an informal plan to creditors that included flexible repayment options regarding its US$26 billion restructuring. This was received by investors as good news for Dubai.

And as Dubai goes, so goes Emaar. @Email:agiuffrida@thenational.ae

Back to the top

More articles


Editor's Picks

 Would you like it in blue? An Afghan shopkeeper shows a burqa to a customer at a bazaar in Herat. (Aref Karimi / AFP /  April 13, 2014)

In pictures: Best business images for the week to April 24, 2014

Here are some of the best business images for the week to April 24, 2014.

 That's asking a lot: this four-bedroom duplex penthouse apartment  at Marina Residence in Dubai is for sale with an asking price of Dh15.7 million. (Courtesy Better Homes / April 2014)

In pictures: Palm Jumeirah penthouse listed for Dh15.7 million

A four-bedroom duplex penthouse in Marina Residence 3 on Dubai's Palm Jumeirah is on the market for Dh15.7 million.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National