Gulf Property Shares Fall as Emaar Says It Deferred Payments

By Matthew Brown

Nov. 9 (Bloomberg) -- Gulf real-estate shares declined after reports said Emaar Properties PJSC, the Middle East's biggest publicly traded property developer, will allow customers to defer payments because of the credit crisis.

``The news of Emaar deferring payments is clearly not well received,'' Roy Cherry, vice president of research at Shuaa Capital PJSC, said today in a phone interview from Dubai. ``It means there is a risk clients, mortgage providers could default on payments. There were also reports this weekend of fall in property prices, and of redundancies in sales departments at property developers.''

Emaar lost as much as 45 fils, or 9.1 percent, to 4.48 dirhams in Dubai trading. The stock was trading at 4.59 dirhams at 12:51 p.m. local time, the lowest since November 2004.

The company will allow real-estate customers to defer payments because the credit crisis has made it more difficult for buyers to get loans from banks, Gulf News reported yesterday, citing Eisam Galadari, chief executive officer of Emaar's international operations.

Aldar Properties PJSC, the largest real-estate developer in Abu Dhabi, dropped 7.1 percent to 5 dirhams, while Sorouh Real Estate Co., the emirate's second-largest developer by market value, fell 7.5 percent to 3.58 dirhams.

Al Mazaya Holding Co., a Kuwait-based property developer, plunged 8.5 percent to 540 fils. Ezdan Real Estate Co., Qatar's largest real-estate company by market value, dropped 8.6 percent to 32 riyals.

To contact the reporter on this story: Matthew Brown in Dubai at mbrown42@bloomberg.net