Dubai’s capital markets are much better placed to handle the recent economic fall-out in the US and the eurozone, having learned several lessons from the 2008 global crisis and its own downturn two years ago, Global Arab Network reports according to OBG.
Like stock markets around the world, the Dubai Financial Market (DFM) retreated in the wake of ratings agency Standard & Poor’s August 5 decision to downgrade the US’s credit rating. The DFM’s main index shed up to 3.7% in value on August 7, the first day of trading after the agency cut the US’s AAA rating, and almost as much over the two subsequent days of trading. However, the falls were nowhere near those posted in some other markets around the world, or even closer to home in the Gulf region.
Part of the reason for this is that Dubai’s capital markets have emerged from their own recent slowdown in a better position than before. Having seen a correction last year, the DFM has been moving slowly upward and the general index is now close to where it was a year ago. Many of the high-profile and high-level debts held by Dubai public and private entities have been restructured and are in the process of being cleared, meaning that the emirate is less exposed than it was when the full impact of the international financial crisis hit in 2008 and 2009.
Like stock markets around the world, the Dubai Financial Market (DFM) retreated in the wake of ratings agency Standard & Poor’s August 5 decision to downgrade the US’s credit rating. The DFM’s main index shed up to 3.7% in value on August 7, the first day of trading after the agency cut the US’s AAA rating, and almost as much over the two subsequent days of trading. However, the falls were nowhere near those posted in some other markets around the world, or even closer to home in the Gulf region.
Part of the reason for this is that Dubai’s capital markets have emerged from their own recent slowdown in a better position than before. Having seen a correction last year, the DFM has been moving slowly upward and the general index is now close to where it was a year ago. Many of the high-profile and high-level debts held by Dubai public and private entities have been restructured and are in the process of being cleared, meaning that the emirate is less exposed than it was when the full impact of the international financial crisis hit in 2008 and 2009.
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