Dubai share prices slump as Egyptian revolution threatens Emaar
Posted on 30 January 2011 with no comments from readers
Dubai’s leading property developer Emaar saw its shares tumble almost 10 per cent today as the largest foreign property investor in Egypt, where mobs are in control of the streets amid calls for the resignation of President Mubarak. Emaar was lucky indeed to get its $500 million bond issue away last week.
The Dubai Financial Market lost seven per cent in the first two hours of trading on Sunday and fell to its lowest level since the depths of last summer when ArabianMoney recommended buying for a post-Ramadan rally. But the DFM has been on a falling trend since late November.
Revolutionary force
The likely impact of the Egyptian revolution on local and global financial, property and commodity markets is considered in depth in the February edition of the ArabianMoney newsletter published today (sign-up here).
In general the Oil States seem somewhat safeguarded from the wider unrest in the Arab World by wealth and demographics. They could even benefit from higher oil prices as the security of supply comes under question, and Dubai as the regional hub city might find itself with a sudden inflow of rich Arab residents.
The wife of the deposed Tunisian president arrived last week, allegedly with 1.5 tonnes of gold. Dubai is popular with Arabs as a modern city with a multi-cultural population and common heritage. Rich new residents could quickly fill the estimated 27,000 apartments and villas currently on offer on www.propertyfinder.ae for sale or rent.
However, the most immediate impact of unrest in the Arab World is a big sell-off in local stock markets, and futures show a major correction is looming for global stock markets tomorrow as the markets discount the likely impact of higher energy prices and greatly increased instability in the Middle East.
