On Tuesday, the Dubai's index achieves a 34-month closing high as so-called a "smart money" from the foreign investors buys into the emirate's economic recovery. Ahead of Tuesday, the Bluechips lead the gains. Emaar Properties jumps 3.7 % and the top bank Emirates NBD (ENBD) soars 8.6 % to a 14-month high.
The third largest stock by the market value after Emaar and ENBD, slumps 0.6%. The telecom operator's shares were off-limits to the foreign institutions.
Sebastien Henin, portfolio manager at The National Investor, said:"People realised there is an economic recovery in Dubai and we have more foreign money that wants to invest in the emerging and frontier markets. For the first time, we have smart money which is moving into the region. There is targeting the bluechips and in Dubai and Abu Dhabi you don't have many quality names, so they were targeting Emaar, Air Arabia and Emirates NBD."
The Passenger flows through Dubai's main airport climbed 13.2 % in 2012 to become the world's third busiest for the international passenger traffic. Dubai slump into recession in 2009 as a property bubble burst, but is recovering, although it faces nearly US$50bn of the debt maturities between 2014 and 2016, according to the Standard Chartered report in November.
Dubai's index jumps 1.8 % to 1,853 points, the highest finish since March 2010.
Abu Dhabi's measure increases 1.2 % to a 33-month high of 2,839 points. Abu Dhabi Commercial Bank and Union National Bank , both gained 1.8 and 2.3 % respectively.