DUBAI Aug 10 Dubai's market may rise on Sunday
after local mortgage lender Amlak Finance said all its
creditors had approved a plan to restructure its debt, but the
conflict in Iraqi Kurdistan may weigh on some individual Gulf
Amlak's debt restructuring talks were the last major
hangover from Dubai's property market crash of 2008. Its
announcement, made after the market close on Thursday, was not
unexpected but was good news in particular for Emaar Properties
, which owns 45 percent of Amlak.
Emaar shares rose 1.6 percent on Thursday, possibly in
anticipation of the announcement.
Budget carrier Air Arabia may also attract
interest after reporting on Saturday that its second-quarter net
profit more than doubled to 173 million dirhams ($47.1 million),
well above analysts' average forecast of 123 million
Dubai contractor Drake & Scull blamed project
delays in Saudi Arabia as it posted a 41 percent drop in second
quarter profit on Sunday.
The global market environment improved at the end of last
week, with the Dow Jones industrial average rising 1.1
percent on Friday after Russia said it had ended military drills
However, the fighting near the Iraqi Kurdish capital of
Arbil may weigh on some individual Gulf stocks. In European
markets, Iraqi Kurdistan-focused companies' shares fell sharply
on Thursday and Friday as investors reassessed the region's
The insurgency in Iraq has not hurt overall market
confidence in the Gulf; investors still see no direct impact on
the Gulf Cooperation Council, where currency forwards and credit
default swaps have not risen in response to Iraq. Limited U.S.
air strikes to defend Arbil may eventually help to roll back the
But several Gulf stocks with exposure to Iraqi Kurdistan
could face fresh pressure in coming days. Abu Dhabi National
Energy Co (TAQA) said at the weekend that it had
suspended its activity at the Atrush Block in Kurdistan because
of the instability.
Dana Gas said last Wednesday that the company's
operations in Kurdistan were continuing normally with no
security threats so far. It has not issued a fresh statement on
the issue since then.
Telecommunications operators Zain and Ooredoo
also have major exposure to Iraq via subsidiaries.
(Reporting by Andrew Torchia; editing by Matt Smith)