Gulf Real Estate Lifts Region's Leading Stock Markets
Some stock markets in the Gulf region improved slightly during the early trade last Sunday, thanks to the area's booming real estate sector.
According to a report published by Arabian Business, stock markets in Qatar and the United Arab Emirates saw the largest improvement during Sunday's early trading. Dubai, one of UAE's leading housing markets, saw a positive 2 percent growth after it suffered 2.6 percent losses on Thursday's trading.
Leading real estate firms Damac and Emaar Properties also saw significant improvement on their individual stocks after they both enjoyed a 2.5 percent bump.
Drake & Scull, on the other hand, saw a 3.9 percent increase in their latest index as of Sunday. The company posted a staggering 14.7 million dirhams (or $4 million) profit in the last quarter of 2015. The index increase was also a breath of fresh air for the company as some analysts have put the company's losses at 38.6 million dirhams.
Abu Dhabi real estate firms Eshraq and RAK Properties both enjoyed a 3 percent index improvement, kicking up the overall benchmark by 1 percent. Overall stock market trading in UAE significantly improved during last Sunday's trading due to real estate-related stocks.
In Qatar's capital, the stock market during Sunday's trading also improved because of real estate-related stocks. In fact, Doha's index improved by 1.6 percent. Qatari real estate firms Ezdan Holding Group and Barwa Real Estate experienced an over 2.5 percent index improvement during last Sunday's trading.
A separate report from The National showed that Gulf-based real estate firms are not only active in local investments, they are also becoming more visible in the international market. In fact, the report noted that Middle Eastern real estate investors have become quite active lately in European real estate.
This, according to the report, was brought about by the budgetary deficits in their home country, prompting them to look for alternative investment opportunities in a bid to protect their assets.