By: Mahmoud Gamal

Dubai – Mubasher: Emaar Properties’ stock surged on the Dubai Financial Market (DFM) on Tuesday, on the back of "promises" of special dividends in 2017 and the launch of a new project, according to an analyst.

By 12:15 pm UAE time, Emaar’s stock grew 2.5% to AED 7.42, recording a turnover of AED 44.9 million and a volume of 6.07 million shares.

On Monday, Emaar’s chairman Mohamed Alabbar announced at the ordinary general meeting (OGM) that the company “is promising a special dividend” in 2017, and added that Emaar will launch a new project within four to six weeks.

The dividends approved on Monday were seen as “unreasonable” for investors; however, Alabbar’s announcement of a “special dividend” has boosted the stock, commented analyst Mohamed Kamal.

Emaar’s announcement of maintaining liquidity and carrying on with new projects despite challenges encountered by the real estate sector is a positive indicator for long-term shareholders, Kamal told Mubasher.

Stock gains recorded on Tuesday will likely boost the Dubai Financial Market (DFM), he noted, adding that Emaar’s stock will target the level of AED 7.8, and passing it will prompt further gains towards AED 8.

Translated by: Nada Adel Sobhi