Dubai stocks rose to the highest since November 2008 as Deyaar Development PJSC and Union Properties PJSC surged on bets the shares are cheap amid a recovery in property prices in the Persian Gulf tourist hub.

Deyaar, which today said it was holding a press conference Sept. 1 to announce a new project, soared the most since March 2012 as trading volumes climbed to more than 10 times the three- month daily average. Union Properties jumped 15 percent to the highest since January 2010. Dubai’s DFM General Index advanced 1.8 percent to 2,748.27 at the close in the emirate.

Today’s gains brought this year’s advance for Deyaar to 63 percent and for Union Properties to 58 percent. That compares with a surge of 67 percent for Emaar Properties PJSC, the developer of the world’s tallest tower, and 69 percent for Dubai’s benchmark index. The emirate is benefiting from an economic and real-estate recovery, with apartment prices in Dubai rising 17 percent in June from a year ago and those of villas increasing 12 percent, according to data from Jones Lang LaSalle. House prices had dropped more than 65 percent from a peak in 2008 as the global credit crisis crimped lending.

“These two companies were the laggards of the Dubai market and this is a kind of catch up trade,” Sebastien Henin, a portfolio manager at The National Investor, said by phone from Abu Dhabi today. The shares, which are penny stocks and “highly speculative,” also broke a “major resistance,” which spurred buying by retail investors, he said.

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Deyaar and Union Properties trade at about 0.8 times book value, compared with a multiple of almost 1.2 for Emaar, according to data compiled by Bloomberg. Deyaar soared 15 percent to 57.2 fils, while Union Properties closed at 62.4 fils. There are 100 fils to the dirham.

Emirates NBD PJSC, Dubai’s biggest bank and the largest shareholder in Union Properties, rose 2.7 percent to 5.75 dirhams, the highest since May 20. Air Arabia PJSC, the Middle East’s biggest low-cost carrier, advanced 4.3 percent to 1.45 dirhams, the highest since September 2008.

Abu Dhabi’s benchmark index advanced for a fifth day, gaining 0.3 percent, while Oman’s measure added 0.2 percent and Egypt’s EGX30 increased 0.9 percent.

Saudi Arabia’s Tadawul All Share Index lost 0.8 percent, led by Riyadh-based Al Rajhi Bank, which declined 1.3 percent. Kuwait’s measure fell 0.4 percent, Qatar’s 0.3 percent and Bahrain’s 0.2 percent.

In Israel, the TA-25 Index retreated 0.2 percent as the yield on the benchmark government bond due March 2023 declined five basis points, or 0.05 percentage point, to 3.98 percent. The Bank of Israel will hold rates at 1.25 percent tomorrow, according to 20 analyst estimates compiled by Bloomberg.

Editors: Claudia Maedler, Shaji Mathew. To contact the reporter on this story: Arif Sharif in Dubai at To contact the editor responsible for this story: Claudia Maedler at