United Arab Emirates shares rose, led by real-estate companies, as Abu Dhabi’s Aldar Properties PJSC said it is in talks with the government for funding. Dubai’s index climbed the most this month, while Kuwait stocks fell.

Aldar, the capital’s biggest developer, climbed 3.2 percent, lifting the ADX General Index 0.2 percent to 2,755.3. Emaar Properties PJSC, builder of the world’s tallest skyscraper, led the gain in Dubai after shareholders approved a $500 million convertible notes issue. The DFM General Index advanced 1.3 percent, the most since Oct. 28, to 1,715.68 at the 2 p.m. close in the emirate. Kuwait’s index lost 1 percent.
Investors are optimistic as “the market is now expecting that Aldar will get some non dilutive support given their announcement of explicit talks with the government,” said Shehzad Janab, head of asset management at Dubai-based Daman Investments PSC. “When Aldar moves up, it drags other real- estate names in the U.A.E.”
Aldar climbed to 2.29 dirhams. The developer said it expects to reach a “framework” agreement with Abu Dhabi’s government on cash requirements by the end of the year. The builder of thousands of homes and offices across the emirate has been hurt by falling sales and about 26 billion dirhams ($7 billion) of outstanding debt. The company posted a third-quarter loss of 731.2 million dirhams. The shares fell as much as 5.9 percent earlier.
The DFM Real Estate Index rallied 3 percent and Abu Dhabi’s property index jumped 2.7 percent. Emaar, the company with the heaviest-weighting on Dubai’s gauge, rose 3.3 percent, the most since Oct. 28, to 3.77 dirhams. The developer plans to use the proceeds of a bond sale to pay contractors and convert $1.4 billion of short-term debt into long term securities.
-----------------Kuwait falls
Kuwait stocks fell the most since July 4 to 6,982.2. Al- Fawares Holding Co. said it will file a lawsuit against Mobile Telecommunications Co., known as Zain, and its board for allowing Emirates Telecommunications Corp. to conduct due diligence on the Kuwaiti phone operator without presenting the purchase offer, according to an advertisement in Al-Watan newspaper on Tuesday. Calls to Al-Fawares weren’t returned.
Etisalat last week said it started the due diligence process to buy a 51 percent stake of Zain in a deal valued at about $12 billion.
-----------------Investor interest
“Investors believe that today’s news may either void the sale or prolong the process which isn’t in investors’ or shareholders’ best interests,” said Jasem Al Zeraei, head of institutional sales at NBK Capital in Kuwait. “From what we know the deal is going through and things are looking positive.” Zain shares closed unchanged after earlier falling as much as 5.4 percent. Etisalat shares were also unchanged.
Saudi Arabia’s Tadawul All Share Index gained 0.3 percent and Oman’s gauge rose less than 0.1 percent. Qatar’s QE Index increased 0.4 percent, while Bahrain’s measure decreased 0.1 percent.
(Source: Bloomberg)