Dubai Stocks Fall on Concern Gain Is Overdone Given Debt Issue

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Dubai shares dropped for the first time in three days, led by Emaar Properties PJSC, on concern yesterday’s gains outpaced growth prospects in the debt-laden emirate.

Emaar, the developer of the world’s tallest skyscraper in Dubai, retreated the most in more than two weeks. Arabtec Holding PJSC, the largest construction company in the United Arab Emirates, declined as much as 3.4 percent. The DFM General Index lost 1.4 percent to 1,722.27 at 12:21 p.m. in Dubai. The measure soared 3.7 percent yesterday after Sheikh Ahmed Bin Saeed al-Maktoum, chairman of the Dubai Supreme Fiscal Committee, said the government is “always behind” Dubai World.

“The market can’t sustain a 4 percent rise without a profit-taking bout,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “Investors are still hoping for an amicable settlement to the Dubai World predicament.”