UAE equities rally on Dh50B stimulus plan
dubai — Abu Dhabi and Dubai bourses gained on Wednesday after the emirate of Abu Dhabi announced a massive Dh50 billion stimulus package to give a fillip to the economy.
The Abu Dhabi Securities Exchange (ADX) gained 0.8 per cent to 4,652 points while the Dubai Financial Market rose 0.4 per cent to 3,055 points, with most companies advancing, led by some big banks and real estate firms.
Among ADX-listed equities, First Abu Dhabi Bank, Aldar, etisalat, Abu Dhabi Commercial Bank and Dana Gas were the most active stocks on Wednesday. Bildco was the top gainer with a 7.3 per cent growth, followed by IHC at 5.6 per cent, Taqa at 4.7 per cent and etisalat at 1.8 per cent.
On the Dubai bourse, property and construction firms’ counters witnessed heavy trading, with Drake & Scull, Arabtec and Emaar Properties remaining the most active by volume.
His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, on Tuesday approved a Dh50 billion economic stimulus package for Abu Dhabi, aimed at accelerating economic growth over the next three years. In addition, 10 new economic initiatives to improve the ease of doing business in Abu Dhabi and enhance the work experience for UAE nationals, residents and investors alike were launched on Tuesday. The Executive Committee of the Abu Dhabi Executive Council has been asked to draw a detailed execution plan for the stimulus package within 90 days.
Analysts expect that the threeyear stimulus package will generate more business activity in Abu Dhabi and boost equities from hospitality, real estate, banking and finance companies linked to the government. The three-year stimulus package announced by the Crown Prince includes more investment in new technologies and tourism.
— waheedabbas@khaleejtimes.com