Dubai Shares Lead Gulf Declines as Oil Rout Extends Into 2015 - Bloomberg

Dubai Shares Lead Gulf Declines as Oil Rout Extends Into 2015 - Bloomberg:



"Dubai and Abu Dhabi stocks fell on speculation sliding oil prices will curb revenue for a region that accounts for about a third of the world’s crude reserves. 




Dubai’s DFM General Index (DFMGI) dropped 2.3 percent to close at 3,689.06, its lowest in more than two weeks, as markets reopened after the end-of-year holidays. Emirates NBD PJSC (EMIRATES) and Dubai Islamic Bank PJSC (DIB) led Dubai’s drop. The ADX General Index (ADSMI) in Abu Dhabi, home to about 6 percent of the world’s proven oil reserves, lost 1.7 percent while Qatar’s gauge declined 0.5 percent. Saudi Arabian stocks fell 0.6 percent in Riyadh.



Brent crude prices slipped 1.6 percent to $56.42 a barrel on Jan. 2, after falling 48 percent last year, the most since the financial crisis. Abu Dhabi, the richest of the seven sheikhdom’s that make up the United Arab Emirates, relies on oil revenue to fund both the federal and its own budgets. While Dubai’s government revenue isn’t oil based, it has received bailouts from Abu Dhabi, including about $20 billion in 2009 when it teetered on the edge of default."



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