U.A.E. Shares Drop for a 2nd Day on Losses, Debt Restructuring

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United Arab Emirates shares declined for a second day after real-estate company Aldar Properties PJSC reported a loss and as investors hesitated to commit funds without clarity on Dubai’s debt restructuring. Saudi Arabia’s benchmark index rose.

Aldar, the Middle East’s second-largest developer by assets, fell to the lowest in almost seven months after reporting a fourth-quarter loss. Union Properties, a Dubai-based developer, retreated to the lowest level on record as it posted a full-year loss. Emaar Properties PJSC lost 1 percent. Abu Dhabi’s ADX General Index declined 0.6 percent to 2,710.73, bringing the two-day drop to 1.2 percent. Dubai’s DFM General Index lost 0.3 percent.

“Dubai World restructuring talks are now the biggest overhang in the market,” said Rabih Sultani, a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. “Most investors are still very hesitant to commit additional capital to Dubai without further news on the restructuring.”