Dubai Leads Drop in Most Middle East Stocks on Saudi Credit Cut - Bloomberg Business

Dubai Leads Drop in Most Middle East Stocks on Saudi Credit Cut - Bloomberg Business:

"Dubai’s stocks sank to the lowest level in more than two months, leading the drop in most Middle Eastern markets, on concern that Saudi Arabia’s rating cut could impact borrowing costs across the region.
The DFM General Index dropped 2.6 percent to 3,411.59 at 12:01 p.m. local time to the lowest level since Aug. 25. Saudi Arabia’s Tadawul All Share Index lost 0.4 percent after the credit rating for the Arab world’s biggest economy was cut by Standard & Poor’s, which cited an increase in the kingdom’s budget deficit after the slump in oil prices.
"The downgrade will have implications for banks and financial services sector across the region," said Muhammad Shabbir, the head of regional equities at Rasmala Investment Bank Ltd. in Dubai. "Banks’ credit ratings could come under pressure, not just for Dubai but for all across the Gulf Cooperation Council. This has implications for the costs of borrowing.""



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