DUBAI, Jan. 16 (Xinhua) -- Ample annual profit increases across the board have boosted market indexes of the oil-rich Gulf Arab countries on Thursday and in recent weeks.
The Dubai Financial Market General Index (DFMGI) reported a rise of over 115 percent in 2013, but that did not prevent investors to send the gauge even higher during the first two weeks of January.
On Thursday, the DFMGI closed 0.83 percent higher at 3,609.18 points amid record-high trading volumes. Since Jan. 1 this year, the gauge has gained 7.10 per cent.
The shares of Arabtec Holding, the biggest construction firm in the United Arab Emirates (UAE), was the share of the week. Arabtec gained 20 percent in the last seven trading days. Earlier in the week on Wednesday, Arabtec said that it has been awarded a 2.59 billion Dirham (706.3 million dollars) contract for construction of a mixed-use development in Al Reem Island, offshore of Abu Dhabi.
The project will house a 61-storey residential tower featuring 613 furnished apartments, and a 15-storey C-shaped tower that will host a five-star hotel.
Shuaa Capital, the oldest investment bank in the UAE, benefited from the comeback in capital markets. Shuaa (Arabic for spark) reported earlier in the week, that it generated in 2013 its first annual profit in the post financial crisis era.
Despite the boom in capital markets, construction and housing in the UAE, Dr. Abdulla Al-Saleh, undersecretary at the UAE ministry of economy and foreign trade said earlier in the day, there were no signs of a bubble yet.
"Those who speak of a bubble miss a great opportunity to invest in our country," he told the media at a press conference announcing the fourth Annual Investment Meeting which will take place from April 8 to 10 in Dubai.
According to Dr. Al-Saleh, foreign direct investments into the UAE reached 12 billion dollars in 2013 "and this amount is expected to rise by 20 percent to 14.4 billion dollars this year due to the tailwinds triggered by Dubai's successful bid to host the World Expo in 2020."
Barclays Bank said in a study that it sees the peak of the growth driven by the Expo 2020 reach in five years, and expects the emirate to grow by 10.5 percent from 2018 to 2021. The British lender estimates that the event would create 277,000 jobs and revenues of 84 billion Dirham or 22.90 billion dollars.
Other listed companies in the Gulf Arab countries surged and fueled market indexes due to bullish earnings figures for 2013.
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