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

Dubai’s stock index dropped for a second day amid concern efforts to stem Europe’s debt crisis may slow and a worse-than-forecast U.S. jobs report indicated the world’s largest economy may be headed for recession.

Emaar Properties PJSC (EMAAR), developer of the world’s tallest tower in Dubai, 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 level since Aug. 28, at the 2 p.m. close in the emirate. The Bloomberg GCC 200 Index (BGCC200) decreased 0.9 percent and Saudi Arabia’s Tadawul All Share Index (SASEIDX) declined 1 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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