Dubai shares dropped to the lowest in two weeks, leading a decline among Gulf markets, on concern that the region’s economic recovery may not be sustainable and as companies in Saudi Arabia reported lower earnings.
Emaar Properties PJSC, the biggest listed company in Dubai, fell to the lowest in a week. Rabigh Refining and Petrochemicals Co. lost the most since July after reporting a wider loss. Kingdom Holding Co., the investment company owned by Saudi Prince Alwaleed bin Talal, and Saudi Cable Co. dropped after saying third-quarter profit declined. Dubai’s benchmark index retreated 1.6 percent and Saudi Arabia’s Tadawul declined 1.1 percent to 6,472.97 at 1:34 p.m. in Riyadh.
“There is a bit of nervousness about the sustainability” of the economic recovery, said Robert McKinnon, managing director of Dubai-based investment bank Al Mal Capital PSC. Investors “need to see evidence that the economic recovery is lasting, so we’ll go through a correction, profit taking, wait-and-see stage.”
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