property-market

By Zahraa Alkhalisi and Vivian Salama May 2 (Bloomberg) — Dubai’s benchmark index declined, leading a drop in United Arab Emirates shares, after Deyaar Development PJSC and Aldar Properties PJSC reported first- quarter losses. Deyaar , the Dubai-based developer, tumbled to its lowest close on record. Aldar , Abu Dhabi’s biggest property developer, fell to its lowest level in two months after missing analysts’ estimates. The Dubai Financial Market Index slipped 0.9 percent to 1,724.27, extending last month’s 5.6 percent decline. ADX General Index retreated for a fifth day, losing 0.1 percent. Earnings “have all come out weaker than expected, particularly on the real-estate front,” said Dubai-based Rabih Sultani , a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. Dubai, the second-biggest sheikhdom in the United Arab Emirates, went from being the world’s best performing property market to the worst within a year. The property market in the U.A.E. was hurt after banks curtailed lending and speculators exited at the onset of the financial crisis. Deyaar declined 3.1 percent to 40.7 fils, its lowest close since the shares began trading in September 2007. The company posted a net loss of 100 million dirhams ($27.2 million). Aldar dropped 3.6 percent to 3.78 dirhams. The net loss was 314.2 million dirhams after a year-earlier profit . Analysts surveyed by Bloomberg had expected a profit. Qatar’s DSM 20 index dropped 0.4 percent. The Kuwait Stock Exchange Index added 0.1 percent. Oman’s MSM30 Index rose 0.3 percent. Saudi Arabia’s Tadawul All Share Index slipped 0.2 percent to 6,908.17 at 1:54 p.m. in the kingdom. Bahrain’s market was closed for a holiday. To contact the reporter on this story: Zahraa Alkhalisi in Abu Dhabi at zalkhalisi@bloomberg.net