Dubai stock market dives six per cent

Monday 30th November 2009

Dubai and Abu Dhabi saw their main stock markets dive at least six per cent in early trading, but shares across Europe and Asia rebounded.

The revelation that Dubai World, a government holding company, would need to delay repayment of their £35 billion debt sent shock waves through the global markets last week.

However, the fears that the country's debt crisis would spread across global markets began to die down this morning, with the FTSE 100 rising 16.16 points in early trading.

The Central Bank of the United Arab Emirates (UAE) said yesterday they would provide banks with an emergency liquidity facility, which seems to have calmed investors, and was a move welcomed by the International Monetary Fund.

It is hoped the liquidity will be available to all UAE banks and foreign banks operating in the Emirates.

Despite Dubai booming over the last few years, it would appear the area has been hit hard by the global financial crisis, with property prices down 50 per cent.

This morning, construction and financial stocks fell nearly ten per cent in Dubai. ADNFCR-1783-ID-19485253-ADNFCR

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