In the statement, Union Properties’ company secretary Saeed Yousef, said: “We would like to confirm that there are no merger discussions taking place with any company.”

On 6 October, media reports claimed that Union Properties would merge with rival real estate firm Deyaar, which is also listed on the DFM.

Shares in both companies had slumped in line with a fall across stock exchanges in emerging markets in September and October.

However, on 5 October, Deyaar announced strong earnings for the three months to the end of September.

The company’s net profits for the quarter were AED312m ($85m), up 56 per cent on the same period in 2007. Union Properties has yet to release its third-quarter results.