Stock markets in the United Arab Emirates (UAE) in Dubai and Abu Dhabi were the first Gulf exchanges to resume trading on Monday after the Islamic Holiday of Eid ul-Fitr which marks the end of the Muslim fasting month of Ramadan, while markets in Saudi Arabia, Qatar, Kuwait and Bahrain remained closed.
The Dubai Financial Market (DFM) surged 2.43 percent to close at 1,630.85 points. The Abu Dhabi Securities Exchange ADX gained 1. 38 percent, ending at 2,566.56 points. The advances at both markets were broadly supported, as all sector indices added value.
Shortly before Eid on Sept. 10, government-related entity Dubai World announced that it has received formal agreement from over 99 percent by value and approximately 99 percent by number of its creditor banks to restructure approximately 24.9 billion U.S. dollars of liabilities. The company’s total debt stands at around 60 billion dollars.
Fahd Iqbal, equity analyst at EFG Hermes said “in our opinion, the announcement by Dubai World is an important and necessary support factor for the UAE to enjoy a revival in risk appetite.”
Real estate giant Emaar Properties was the most liquid stock, finishing 2.72 percent higher at 3.78 dirhams (1.02 dollars).