MIDEAST STOCKS-Dubai sinks 7 pct, most since 2009; leads regional drop on Syria | Reuters

MIDEAST STOCKS-Dubai sinks 7 pct, most since 2009; leads regional drop on Syria | Reuters:

"* Escalation of Syria war unlikely to affect Gulf much

* But markets ripe for profit-taking after recent surges

* Margin calls hit local retail investors in Dubai

* Foreigners are net buyers of stocks

* Saudi Arabia suffers biggest loss since 2011

By Nadia Saleem

DUBAI, Aug 27 (Reuters) - Dubai's stock market tumbled 7.0 percent on Tuesday, its heaviest one-day loss since the emirate's corporate debt crisis in November 2009, as it led a regional sell-off on worries about an escalation of Syria's civil war.

Western powers told the Syrian opposition to expect a Western strike against President Bashar al-Assad's forces within days, after determining his government was responsible for the use of chemical weapons, sources told Reuters.

It is by no means clear that an escalation of the fighting in Syria would have any impact on Gulf economies. Although it is possible that Damascus and its allies could mount covert action against the Gulf, such action would probably not change positive long-term economic prospects."

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