Government bailout sees Dubai shares rise by 4.3%
Dubai World restructuring plans see shares in property developer Emaar rocket by 8.8 percent.
March 25, 2010 12:59 by Ben Flanagan
The DFM Index closed up by 4.31 percent at the end of trading on Thursday, following the announcement that the government will pump $9.5 billion into the struggling state-owned conglomerate Dubai World.
Property developer Emaar saw the greatest gains, with its share price rocketing by 8.82 percent, to close at AED4.07.
Other gainers included the Dubai Financial Market Company (up 7.78 percent), Arabtec (up 6.91 percent), and Dubai Islamic Bank (up 5.53 percent).
The general index closed at 1,845.21.
Dubai World’s restructuring plan was unveiled today, after heavy negotiations with creditors over its $23.5 billion debts. The Dubai government will bail out the company, using $5.7 billion previously provided by Abu Dhabi, and funding the rest itself.