Gulf stocks surged higher Monday after oil-rich Abu Dhabi bailed out neighbor Dubai with a $10 billion cash injection to pay part of the debt of government-owned conglomerate Dubai World and its struggling property unit Nakheel.
The Dubai Financial Market’s benchmark index was recently trading 10% higher at 1871.20. It has now put on about 20% over the past three sessions. Abu Dhabi’s main stock market was up 7.7% at 2814.13.
“Investor confidence will hopefully start seeping back, with people realizing in the long term that Dubai is committed to transparency, and that these are growing pains they will learn from,” said Abdel Kadir Hussain, chief executive of Dubai-based Mashreq Capital. Source: WSJ