Investors in Dubai are demanding for dividends since 2008 and on attaining approval of cash dividends Emaar touches its six weeks high.

Emaar climbed 4.4%, trading 2.5% higher at 3.26 dirhams as of 11:32 a. m. in Dubai. Yesterday, investors approved a cash dividend of 10% for year 2010, for a total of about 600 million dirhams ($163 million).

Chairman of Emaar, builder of the world’s tallest tower in Dubai , Mohamed Alabbar said in the general assembly meeting to the shareholders that a payout may leave the company ill-prepared to face emergencies as investors are demanding as much as 30% in cash.

Before agreeing to the 10% payout, shareholders rejected Mohamed Alabbar’s proposal to pay a 500 m dirham cash dividend along with a 5% bonus share.

“It’s good for retail-investor sentiment, but I’m not sure it’s the wise thing to do,” said Fadi Al Said, a senior manager at ING Investment Management in Dubai, which oversees about $518 billion worldwide. “I prefer Emaar keeps its cash to help meet obligations rather than maybe going to the market later.”