Nakheel nearer a tie-up of its debt restructuring

Dubai construction companies and building contractors were in demand yesterday after Nakheel announced that it was closer to completing its debt restructuring.

The property developer behind Dubai's man-made islands said it had support from more than 91 per cent of its trade creditors by value for a restructuring programme. It needs 95 per cent approval to proceed.

"Nakheel needs only 4 per cent [more] to go forward with its plan. I think it's very achievable," said Mohamed Khaled, a risk manager at Prime Securities. But he voiced some concern over the length of time it would take for the restructuring to take place.

On the Dubai Financial Market (DFM) General Index, Emaar Properties rose 2.06 per cent to Dh3.46 and Arabtec moved 1.57 per cent higher to Dh1.94. Drake & Scull International gained nearly 1 per cent to Dh1.03.

"The market is thirsty for any positive catalyst," Mr Khaled said.

On the Abu Dhabi Securities (ADX) Exchange General Index, RAK Properties rose 2.3 per cent to 44 fils. Dana Gas, although the most actively traded stock, closed flat at 73 fils.

The DFM index closed 1.1 per cent higher at 1,621.7, and the ADX index slipped marginally to 2,702.28. Volumes remained low on both bourses. "There is still no news around, so any time anything comes out people are reacting to just one story," Mr Khaled said.

Kuwait's index rose 0.3 per cent to 6,962.20; Bahrain's slipped 0.02 per cent to 1,427.50; Oman's fell 0.1 per cent to 6,745.66; and Qatar's increased 0.2 per cent to 8,664.21. The Saudi Tadawul All-Share Index rose 0.2 per cent to 6,620.75.

fhalime@thenational.ae