UAE property developers’ earnings give Gulf markets a boost

Most stock markets in the Middle East closed higher on Sunday, reflecting a rally in global stock markets on Friday, and were also boosted by better-thanexpected company results, particularly in real estate.

The Abu Dhabi index gained 0.7 percent and the Dubai index 0.6 percent, as two of the largest property developers in the UAE posted positive fourth- quarter financial results last week that beat market expectations.

“The market is starting to rebuild confidence in earnings as a driver for sentiment,” said Arqaam Capital in a research note.

“Sentiment on the UAE was very weak in 2018, specifically for real estate, on concerns over oversupply risk, pricing pressure that is leading to extended payment plans, and a rental yield compression that is continuing to fall,” Arqaam said.

“But Q4 numbers provided evidence that a few developers have emerged as winners out of market consolidation.”

Emaar Properties, Dubai’s largest listed developer, reported a 27 percent rise in fourth- quarter profit.

The stock rose 2 percent on Sunday.

DAMAC Properties closed up 0.8 percent, despite having reported a nearly 60 percent fall in fullyear profit and an 87 percent drop in fourth- quarter net profits.

In Abu Dhabi, Aldar Properties gained 3.6 percent.

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