Qatar’s stocks climbed to the highest level in more than two years as nominal gross domestic product in the oil- and gas-rich Persian Gulf country increased. Dubai’s gauge declined for the first time in four days.

Industries Qatar, the second-biggest petrochemicals maker in the Middle East, gained for a fourth day. Barwa Real Estate Co., the nation’s largest publicly traded property developer by assets, advanced to the highest in a week. The QE Index gained 1.5 percent to 8,872.53, the highest since September 2008, at the 12:30 p.m. close in Doha. The MSCI Emerging Markets Index advanced 0.9 percent at 4:35 p.m. in Dubai, set for the highest close since June 2008.
“Qatar’s GDP growth came in higher than anticipated,” said Omair Ansari, equity strategist at Gulfmena Alternative Investments in Dubai. “Earnings upgrades are expected due to the new mandates that will be allocated in anticipation of the World Cup.”
Qatar’s nominal GDP grew 13 percent in the third quarter from the previous three months, the state-run statistics authority said on Sunday. Nominal GDP soared an annual 21 percent. The $81 billion Qatari economy will expand 16 percent in 2010, the world’s fastest-growing, from 8.6 percent in 2009, the International Monetary Fund said in its World Economic Outlook report in October.
Moody’s Investors Service estimates Qatar will spend about $57 billion over the next decade for infrastructure developments related to the World Cup. The country on Dec. 2 was awarded the right to host the tournament in 2022. The index has gained 8.4 percent since the announcement was made.
------------Oil rises
Oil traded at $92.04 a barrel, near the highest in more than two years, on speculation the U.S. will sustain an economic recovery into this year, bolstering consumption in the world’s largest crude user. The six nations of the (Persian) Gulf Cooperation Council, including Qatar and Saudi Arabia, supply about a fifth of the world’s oil.
Industries Qatar rose 2.6 percent to 143.6 riyals. Barwa gained 1.4 percent to 36.7 riyals.
In Dubai, shares declined on investor speculation gains following Nakheel PJSC’s progress in renegotiating at least $10.5 billion of debt are overdone given the outlook for profit growth.
Dubai’s DFM General Index lost 0.3 percent to 1,663.29. The measure rallied 4.1 percent the previous three days, leaving the gauge’s 30 members valued at an average 15.7 times earnings as of Jan. 2. That was the highest since Nov. 1 and compared with multiples of 12.6 for the shares in Abu Dhabi’s measure.
---------------Dubai’s retreat
“The market is going through partial profit taking,” said Mohamed Khaled Hafez, relationship manager at Prime Emirates LLC in Abu Dhabi. “Nakheel news accompanied by oil prices were the main reasons for the recent market gains.”
Nakheel said on Dec. 30 it received funds from the Dubai government to repay Islamic bonds maturing this month. The developer of palm-shaped islands off Dubai’s coast said Jan. 2 it paid 3.9 billion dirhams ($1.1 billion) to trade creditors as the company seeks to renegotiate terms on its loans and bills.
Emirates NBD PJSC, the United Arab Emirates biggest bank, tumbled 6 percent, the most since November 2007. The shares soared 8 percent on Sunday.
Saudi Arabia’s Tadawul All Share Index added 0.3 percent. Abu Dhabi’s ADX General Index rose 0.4 percent. Oman’s MSM30 Index advanced 0.3 percent and the Bloomberg GCC 200 Index of 200 companies in the Persian Gulf gained 0.5 percent. Bahrain’s measure fell 0.3 percent and Kuwait’s gauge slipped 0.1 percent.
(Source: Bloomberg)