DUBAI, 27 December 2007 — Emaar Properties, the largest Arab developer by market value, won approval from the UAE stock market regulator to buy back up to 10 percent of its shares, which have underperformed the market this year.
Shares of Emaar have rallied 10.6 percent this week, including a 2.03 percent gain yesterday prior to the regulator’s announcement after closing hours. Emaar would be able to buy back shares within a year of the approval granted by the Securities and Commodities Authority at a board meeting on Dec. 25, the regulator said in a statement on the Dubai bourse website.
Shares of Emaar have underperformed the market this year, rising about 23 percent against a 46 percent rise in Dubai’s main index since Jan. 1.
The stock, which closed at AED15.10 ($4.11) yesterday, is trading 35 percent above a AED20.4 price target of investment bank EFG-Hermes and at a 9.3 discount to Deutsche Bank’s AED16.50 target.
Emaar’s let its last buyback period expire in July without any share purchases.
Foreign investors can own up to 49 percent of Emaar’s stock.