UAE stock market plummets on reopening

Nov. 30, 2009 - PRLog -- Stock markets in the United Arab Emirates have opened sharply down on the first day of trading after news of Dubai's debt crisis was revealed.

Shares in the Dubai and Abu Dhabi stock markets fell by 5.9% on Monday, after the Muslim holiday of Eid al Adha, in reaction to the recent announcement by the government's holding company, Dubai World, asking for delays on payments of debts of $59 bn.

International investors reacted with shock to last week's revelation.

Dubai's total debt is around $80 billion.

Other Persian Gulf countries remained closed for the religious holiday on Monday, while analysts expect them to follow the UAE in the downfall when they reopen on Tuesday.

The UAE's central bank has created a special fund to offer extra liquidity to domestic and foreign banks operating in the country to cope with the crisis in a sign that its federal government is trying to curb investor worries over Dubai's crushing debt.

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