Stocks in Dubai and Abu Dhabi are trading at their highest levels in more than three years, as investors bet on the real estate rebound in the United Arab Emirates, following the crash of 2009.
Interest in the UAE and its real estate market has been particularly strong among foreign investors, who have been shunning the market since the 2009 crisis.
One of the biggest winners has been Emaar Properties, the largest real estate developer in Gulf region, whose shares have spiked nearly 50% this year.
The long-term fundamentals in Dubai also remain attractive. The government is anticipating economic growth of more than 4% this year.
But experts say current valuations are still high, making the market appear expensive, especially in comparison to other emerging markets in Latin America and Asia.
Given that backdrop, they say it wouldn't be surprising to see the UAE market rally cool off a bit before resuming its upward trajectory.
