Dubai stock market slumps again

Posted by World

Dubai's stock market fell by 6% on Monday on new worries about the size of the emirate's debt burden. It came as Dubai's finance minister said the government would not sell any assets to help the emirate's investment vehicle, Dubai World, meet its debts. Minister Abdulrahman al-Saleh said any assets sold would have to be the property-to-ports company's own.

Dubai shares have had a torrid time since Dubai World said 10 days ago it wanted to stall payments to creditors. They finished Monday trading at their lowest level since 22 July. Real estate and banking shares were particularly hard hit, with investors still concerned about the financial sector's exposure to Dubai World's debt.

Dubai World has some valuable assets, notably its ports business, which stretches to every continent in the world, including London's Tilbury Docks and France's Le Havre. Other items in its wide-ranging investment portfolio include the luxury retailer Barney's of New York, a list of high-end US hotels, and the Canadian acrobatic circus franchise, Cirque du Soleil. Speaking to Al-Jazeera, Mr. Al-Saleh said like any company that has commitments, part of getting liquidity is selling some assets.


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