STOCKS NEWS MIDEAST-Property stocks lift Dubai; Abu Dhabi up

0612 GMT - Dubai's property-related stocks rise after the

emirate's ruler announced plans for a new master project,

lifting the share index to a week-high.

Emaar Properties, the largest listed company on

the Dubai bourse, rises 4.7 percent, while builder Arabtec

adds 3.5 percent and developer Deyaar climbs

1.5 percent.

Property stocks are among the most liquid and so tend to

exaggerate market moves.

Dubai's ruler on Saturday announced plans for a huge retail

and tourist development in the city that appeared to include

re-starting projects that were halted following a property price

crash.

The index climbs 1.2 percent to 1,616 points, up for a

fourth session since Nov. 19's seven-week low.

Abu Dhabi's benchmark rises 0.1 percent to 2,644

points.

Dana Gas is the most notable mover, adding 5.1

percent.

The natural gas producer, in talks to restructure a $920

million Islamic bond, is offering bondholders cash and an

average 8 percent coupon on two new sukuks to replace the

existing one, two sources said.

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0535 GMT - Gulf Arab stocks are expected to be muted in

early trade on Sunday, with investors waiting to see if the

later-opening Saudi Arabia bourse will hold onto the

previous day's gains before committing cash to other markets.

Saudi's index rose 0.8 percent on Saturday, ending a

10-session losing streak as oil price gains drew buyers back to

petrochemical stocks, although it is too early to say whether

the kingdom's bourse has bottomed out, says Sebastien Henin,

portfolio manager at The National Investor.

That means investors in the United Arab Emirates will have

one eye on the Saudi bourse open at 0800 GMT - two hours after

trading in the UAE starts - and if this is positive it could

draw in more buyers to Dubai and Abu Dhabi, Henin says.

"It could be a quiet session and I don't expect a lot of

volatility," says Henin. "The news flow is very poor - it's very

quiet."

World stocks rose on Friday on signs of progress in talks on

releasing aid to Greece, which should boost regional sentiment,

says Marwan Shurrab, vice-president and chief trader at Gulfmena

Alternative Investments, although political turmoil closer to

home could have a more telling influence.

"We're still not seeing the resolution of political issues

such as in Egypt and Syria and that will push investors away

from risk at the current time," adds Shurrab.

Property-related stocks in the UAE could be a target for

speculative trade after Dubai's ruler announced plans for a huge

retail and tourist development in the city that appeared to

include re-starting projects that were halted following a

property price crash.

(Reporting by Matt Smith,; Editing by Praveen Menon)

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