Dubai completes funding for Dubai Metro’s Route 2020 extension project

The Roads and Transport Authority said that tunneling on the Route 2020 Project is progressing at a steady pace with more than 50 percent of the excavation work already completed. (Roads and Transport Authority)
Updated 22 March 2018
0

Dubai completes funding for Dubai Metro’s Route 2020 extension project

DUBAI: The government has completed the 9 billion-dirham financing exercise to complete the construction of the Dubai Metro’s Route 2020 extension project, the emirate’s Department of Finance said on Thursday.
The transaction consists of a 17-year billion dirham loan guaranteed by the French export credit agency Bpifrance Assurance Export and the Spanish export credit agency Compañía Española de Seguros de Crédito a la Exportación, with 14-year amortizations to start in 2020, and a 10-year conventional facility of 4 billion dirhams, with payments over six years to start in 2022.
The five-stage Route 2020 project, which will cost 10.6 billion dirhams, will extend the existing Dubai Metro Red Line to the Expo 2020 site and will have seven stations in between.
“The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy … we have been able to achieve long-term financing at competitive rates while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner,” Abdulrahman Saleh Al Saleh, DoF director general, said in a statement.
Banco Santander, First Abu Dhabi Bank, HSBC Middle East Limited, Intesa Sanpaolo and Standard Chartered Bank acted as mandated lead arrangers and the facility providers for the financing.
The contract for the design and build for the project was awarded by Dubai’s Road and Transport Authority to a consortium of Alstom Transport, Acciona Infraestructuras and Gulermak.


UAE property developers’ earnings give Gulf markets a boost

Updated 17 February 2019
0

UAE property developers’ earnings give Gulf markets a boost

  • Real estate sector gets confidence boost
  • DAMAC gains despite 87 pct drop in Q4 net profits

DUBAI: Most stock markets in the Middle East closed higher on Sunday, reflecting a rally in global stock markets on Friday, and were also boosted by better-than-expected company results, particularly in real estate.

The Abu Dhabi index gained 0.7 percent and the Dubai index 0.6 percent, as two of the largest property developers in the United Arab Emirates posted positive fourth-quarter financial results last week that beat market expectations.

“The market is starting to rebuild confidence in earnings as a driver for sentiment,” said Arqaam Capital in a research note. “Sentiment on the UAE was very weak in 2018, specifically for real estate, on concerns over oversupply risk, pricing pressure that is leading to extended payment plans, and a rental yield compression that is continuing to fall,” Arqaam said.

“But Q4 numbers provided evidence that a few developers have emerged as winners (Emaar Co’s, Aldar) out of market consolidation.” Emaar Properties, Dubai’s largest listed developer, reported a 27 percent rise in fourth-quarter profit.

The stock rose 2 percent on Sunday. DAMAC Properties closed up 0.8 percent, despite having reported a nearly 60 percent fall in full-year profit and an 87 percent drop in fourth-quarter net profits.

In Abu Dhabi, Aldar Properties gained 3.6 percent. Last week, the developer reported a rise in fourth-quarter earnings and higher dividends for 2018. In other sectors, Abu Dhabi Islamic Bank rose 0.5 percent after saying it had no merger and acquisition plans. This was in response to a Bloomberg report last week which said the bank was considering such options.

The Saudi index closed 0.4 percent down, in contrast to the rest of the region’s markets. Arab National Bank reported an increase in full- year net profit to 3.13 billion riyals ($834.62 million) from 3.03 billion riyals one year earlier.

The stock remained unchanged and this failed to give support to the banking sector. Alinma Bank < 1150.SE> and Al Rajhi Banking & Investment Corp. lost 0.3 percent and 0.6 percent, respectively.

In Egypt, where the main index gained 1.4 percent, Orascom Investment Holding, up 3.2 percent, was among the stocks attracting the highest trading volume. Shares in the company jumped last week after its chairman, Egyptian billionaire businessman Naguib Sawiris, said he saw possible investment opportunities in North Korea if a summit between its leader Kim Jong Un and US President Donald Trump later this month was successful.

SAUDI The index lost 0.4 pct to 8,592 points ARABIA DUBAI The index rose 0.6 pct to 2,550 points ABU DHABI The index rose 0.7 pct to 5,070 points QATAR The index gained 0.7 pct to 10,011 points EGYPT The index rose 1.4 pct to 15,199 points KUWAIT The index gainedd 0.1 pct to 5,427 points OMAN The index was down 0.8 pct at 4,077 points BAHRAIN

The index went up 0.6 pct to 1,381 points ($1 = 3.7502 riyals)