Arabtec and Aabar climbed 6.3 and 5.2 percent respectively. There were market rumours in late December regarding a possible investment by Aabar in the Dubai-based construction firm, but both firms have denied there has been a deal.
“Some buyers are expecting something significant out of Arabtec’s meeting and are positioning themselves accordingly,” said Julian Bruce, EFG-Hermes director of institutional equity sales.
Other Middle East markets also advanced as rising oil prices and steady global equities boosted sentiment.
“Optimism is prevailing at the start of the year on regional and global exchanges, while high oil prices are positive for the Gulf,” said Rami Sidani, Schroders Middle East head of investment.
Oil is down 0.6 percent at $ 82.68 a barrel at 1132 GMT, retreating from a 14-month intraday high. MSCI’s all-country equity benchmark was down 1 percent at 1138 GMT, having touched a 15-month high intraday.
Dubai investors were equally unmoved by reports from Japan that contractors had stopped work on the Dubai Metro because they had not been paid. “The market was already aware Japanese companies were owed money, but we need more clarity on how much is outstanding,” said Ali Khan, managing director at Arqaam Capital. Dubai’s index climbed 1 percent, its fourth gain in five. Beside Arabtec, there was little stock movement and EFG’s Bruce said UAE markets lacked drivers to entice investors.
“We’re still seeking clarity on Dubai World’s debts and Saad and Algosaibi’s debts are still in the background, so I think people will wait for Q4 results before considering their strategy,” added Bruce.
DP World rose for a second day since the ports operator said it would dual list on the London Stock Exchange.
Kuwait’s banks shrugged off the country’s parliament passing a bailout package for its citizens in a move that could hit corporate revenues.
On Wednesday, Kuwait’s parliament defied the government to pass a bailout package for its indebted individuals, despite the finance minister warning it would threaten the country’s banking sector.
The bill is likely to be vetoed, however, and bank stocks were positive.
“The market is getting used to a background of political disquiet,” said a Kuwait-based analyst who asked not to be identified.
Bank Muscat rose 5 percent, lifting Oman’s index to an 11-week closing high following an upbeat HSBC report on the lender.
“It’s the strongest bank (in Oman) and at these levels I’m definitely a buyer for the medium- to long-term,” said Sayed Quadry, vice-president of business development at Amwal Investment in Muscat.
