DUBAI: Property stocks in Dubai and Abu Dhabi rose in early Monday trading after the United Arab Emirates approved a system to grant residency visas of up to 10 years to investors and specialists.

Emaar Properties rose 4 per cent and DAMAC Properties climbed 1.3pc, lifting the Dubai index by 1.3pc.

The UAE move “will surely boost the performance of the real estate sector and give comfort to the investors there and specially property owners,” said Marie Salem, director of capital markets at FFA Dubai.

Investors and specialists in scientific, technical, medical and research fields will receive UAE residency visas for up to 10 years, the government said. The families of those categories of foreigners will also receive the same visa validity.

The UAE cabinet also approved steps on Sunday that would allow for 100pc ownership of UAE-based businesses by foreign investors by the end of this year.

The Dubai real estate sector has been a drag on the market this year, with shares of Emaar down over 15pc despite Monday’s surge.

Residential property prices in Dubai have registered a 12-month decline of 2pc on average, while rents have fallen by up to 5pc in some areas, according to real estate consultancy Cavendish Maxwell.

In Abu Dhabi, Aldar Properties rose 1.4pc, outperforming the Abu Dhabi index which was up 0.4pc.

The Saudi index was flat in early trading with some of the consumer stocks trading lower. Food company Almarai was down 0.5pc.

In Doha, a 1pc gain in Qatar National Bank and a 0.6pc rise in Industries Qatar, the two leading blue-chip stocks, provided support to the market, The Qatari index was up 0.2pc.

The decision, taken by the UAE cabinet Sunday night, aims to lure “international investments and exceptional talent”, according to Dubai ruler Sheikh Mohammed bin Rashed Al-Maktoum.

Published in Dawn, May 22nd, 2018