MIDEAST STOCKS-Dubai falls after c.bank warns on property; politics hit Kuwait | News by Country | Reuters:
"Dubai led stock market losses in the Gulf on Sunday after the United Arab Emirates central bank said it saw potential signs of a property bubble, while investors in Kuwait sold off small-cap stocks as opposition politicians called a public protest.
The Dubai benchmark fell 2.5 percent, dragged down by property and banking stocks which had outperformed the market in the last few weeks as they became part of MSCI's emerging market index at the end of May.
In the first official warning on the risks of a bubble forming in the UAE's property market, the central bank said on Sunday that residential rental yields in Dubai and Abu Dhabi could indicate growing imbalances and overheating in the country's real estate sector.
The central bank also said the banking system was not at risk, and it did not indicate it planned to take any concrete action towards the real estate market. But its warning could eventually lead to further steps to cool the market by local authorities in Dubai and Abu Dhabi."
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