Dubai’s Shares Drop on Europe Risk, U.S. Growth; Emaar Properties Retreats - Bloomberg

Dubai’s stock index retreated for a second day, pacing declines in the Persian Gulf, amid concern over Europe’s debt crisis and a worse-than-forecast jobs report which indicated the U.S. may be headed for recession.

Emaar Properties PJSC (EMAAR), developer of the world’s tallest tower in the emirate, declined for a second day. Dubai Islamic Bank PJSC (DIB), the United Arab Emirates’ biggest Shariah-compliant lender, dropped 1 percent. The DFM General Index (DFMGI) lost 0.3 percent to 1,478.84, the lowest since Aug. 28, at the 2 p.m. close in Dubai. The Bloomberg GCC 200 Index (BGCC200) decreased 0.9 percent at 1:07 p.m. in Riyadh and Saudi Arabia’s Tadawul All Share Index (SASEIDX) declined 1.2 percent, the most since Aug. 20.

“Fear of volatile global markets and a spill over into local and regional markets is returning,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “The sharp drop in U.S. markets last week on weak employment figures coupled with rising fear of hurdles on the euro sovereign debt resolution issue” prompted the drop in Gulf stocks, he said.

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