30 November 2009
Dubai property developer, Nakheel, part of the Dubai world corporation, which is currently struggling with debt-related problems, has requested that Nasdaq stop trading its bonds, until matters are resolved.
Nasdaq has complied by removing the bonds from the Dubai bourse.
Markets across all sectors, not just property, in Dubai tumbled this morning with some major securities falling to almost the 10% permitted.
The financial markets have been adversely affected by state-owned Dubai World’s request to freeze debt repayments of around £35bn, sparking concerns that the emirate’s economy is in bad health.
Dan Nolan, a reporter at Al Jazeera, who broke the story, said: “It has been a bad day here [in Dubai]. The main bourse dropped 5.6% instantly [on opening today, following the Eid al-Adah holidays].
“Analysts said before they opened that anything more than a 3% drop would be a disaster. But others are pleased that it is not ore than the full 10% drop, which was certainly possible.
“Selling orders are far outnumbering buying orders and that is of great concern. It is certainly worrying times at the stock market.
“There are concerns that there will be another large decrease on the stock market tomorrow. But hopes are that it will increase next week.”
Can the same be said for Dubai property prices during these turbulent times?
See Also: Marc Da-Silva (269), Nakheel (2), nasdaq (1), Dubai World (2), Al Jazeera (1), Dan Nolan (1)
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