Dubai stock exchange down 6 percent on huge debt crisis

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The Dubai stock exchange dropped more than 6 per cent on the first day of trading. The shares in debt ridden Dubai, its investment and development engines were off more than 15 per cent in early trade on Monday, as soon as the markets opened.

CJ: Rohit S

Mon, Nov 30, 2009 13:51:49 IST

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WITH THE officials going public with Dubai's huge debt crisis, the Dubai stock exchange dropped more than 6 per cent on the first day of trading.

The shares in debt ridden Dubai, its investment and development engines were off more than 15 per cent in early trade on Monday, as soon as the markets opened.

The drop was because of the turmoil on the world markets after officials on last Wednesday had announced that Dubai World would beed a six month delay in paying its creditors on nearly $60 billion in debt.

The United Arab Emirates Central Back on Sunday, announced that it would stand behind the foreign and domestic banks in Dubai and also offered additional money in a move to calm the regional markets have been remained closed since last week because of an Islamic holiday. The Asian stock markets which had s great fall last week, rebounded back on Monday after the United Arab Emirates moved to contain the fallout from Dubai's debt crisis. The markets moved up by 2 per cent after tumbling on Friday.

Once again, Dubai has been the main affected victim of the global recession in the Gulf.

On Sunday, the UAE's central bank said that it had notice had been sent to Emirati banks and foreign bank branches, making it evident that they would have access to a special additional liquidity facility.

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