Gulf markets surged yesterday, sending markets in Dubai and Doha to record their biggest gains in months as signs emerged that property prices may be levelling out in the UAE.

Dubai stocks surged their most in more than three months after HSBC said UAE property sales prices might be stabilising. Qatar’s property sector also received a boost when the government offered to buy local banks’ real estate portfolios. Shares in Doha rose 5.9%.

HSBC said agreed selling prices in the Emirates rose 5 per cent last month compared with April, on top of April’s 4% gain on March.

The National