Dubai Debt Crisis Hits Arab Bourses

Almost all Arab stock markets, concerned over the outcome of Dubai World debt crisis, remained under pressure during the week and closed at a loss of some points. The markets still seem reeling under uncertainties apprehending the shape the crisis could take in the coming period.

United Arab Emirates stock exchanges, Dubai and Abu Dhabi closed at 1,759 points and 2,699 points, dropping by 6 per cent, apparently, due to Dubai World Crisis which also plunged markets across the world. Kuwait's KSE index and Egypt's AGX30 index declined seven and 1.5 percent to close at 7,056 points and 6,380 points respectively.

An Amman-based portfolio manager, said, "We believe the outcome of Dubai World rescheduling negotiations with creditors will continue to put pressure on Arab bourses in the coming weeks."

However, the debt-ridden emirate of Dubai received helping hand from neighbor, Abu Dhabi which can arrest further decline over the bourses.

Sheikh Ahmed bin Saaed al-Maktoum, chairman of Dubai's Supreme Fiscal Committee said, "We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices."