Dubai's Arabtec surged on Thursday after indebted property developer Nakheel said core banks had unanimously approved its multi-billion dollar restructuring proposal. Builder Arabtec climbed 6.4 percent, helping Dubai's index reach a new two-week high, but most Middle East markets fell, tracking losses in global equities.
Some analysts have put the figure Nakheel owes Arabtec at around 2 billion dirhams ($544.5 million). Nakheel is holding separate debt restructuring talks from those put in place by its parent, state-controlled conglomerate Dubai World. Last week, a source told Reuters Nakheel would complete paying overdue debt to contractors, which include Arabtec, by the end of July. Dubai's index rose 1 percent to its highest finish since June 27. Qatar Islamic Bank fell 3.7 percent, its largest decline for seven weeks after reporting a 35 percent drop in second-quarter profit.
Egypt's Orascom Construction Industries dippped 0.3 percent. On Wednesday, the company said it had bought a Dutch storage tank owner and operator as part of an expansion into Europe. Bank Dhofar ended flat, while National Bank of Oman climbed 0.9 percent after both lenders reported rising quarterly profits, helping Oman's index end higher for a ninth session in 11.
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