Dubai Shares Drop Most in Week on Concern Rally May Be Overdone

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Dubai’s benchmark index dropped the most in more than a week on speculation gains since the beginning of March may have outpaced prospects for profit growth.

Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai, declined 3 percent. Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest Islamic lender, dropped the most in almost two months. Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, also retreated. The DFM General Index fell 2.1 percent, the most since March 29, to close at 1,800.12.

Dubai’s measure has surged 13 percent since the beginning of March after state-owned holding company Dubai World announced its debt restructuring plan. The gauge climbed 4.3 percent on March 25 after the government said it will support the company with as much as $9.5 billion. Abu Dhabi’s benchmark index has gained 5.2 percent since the end of February. Dubai companies will start releasing first-quarter earnings later this month.