Cityscape fails to inspire real estate investors

Gulf real estate shares suffered further declines on Monday as the annual Cityscape exhibition in Dubai failed to cheer investors.

Emaar Properties slumped 10.7 percent lower to 6.07 dirhams as Dubai's real estate sector was among the hardest hit on a day of sharp losses across Gulf Arab markets.

In Abu Dhabi, real estate shares also declined sharply, along with banking stocks. Aldar Properties (6.56 dirhams) and Sorouh Real Estate both ended 9.9 percent lower, while National Bank of Abu Dhabi and First Gulf Bank both ended 10 percent down.

On average, shares in the major players slumped by more than nine percent. Global real estate markets have been hurt by a liquidity crunch and concerns that an economic slowdown will reduce spending in the region. Property companies are heavily reliant on debt to finance new projects.

Shares in Arabtec and Union Properties ended 14.95 percent and 11.47 percent lower respectively, while Tamweel finished 10.51 percent down as the Dubai benchmark ended 7.61 percent lower at 3,551 points.

The main index in Abu Dhabi closed down 5.61 percent at 3,558 points.

Meanwhile, the Saudi stock market, the largest in the Arab world, shed almost 10 percent on Monday after a week-long holiday.

The benchmark ended 9.81 percent lower at 6,726 points, tracking sharp losses with Saudi Basic Industries Corp, and Saudi Fertiliser both finishing 9.9 percent lower. Al Rajhi Bank, Samba Financial Group and Riyad Bank closed 9.8 percent, 9.7 percent and 9.9 percent lower respectively.

It was the first day of trading in Saudi Arabia following the Eid al-Fitr holiday marking the end of the Muslim holy fasting month of Ramadan.

Kuwait's main index ended 3.45 percent lower at 11,951 points, tracking sharp falls in markets across the Gulf Arab region as the global financial turmoil continues to worry investors.

Shares in Mobile Telecommunications Co (Zain) closed 7.35 percent down, while Gulf Bank and National Bank of Kuwait ended 6.78 percent and 3.49 percent lower respectively.

Qatar's main index closed 4.49 percent lower at 8,275 points, as a foreign sell-off is exacerbated by worries over the health of the global economy.

Shares in Qatar National Bank and Industries Qatar both ended more than 6 percent lower, while Qatar Gas and Transport closes more than 3 percent down.

In Bahrain, the index closed 1.53 percent down at 2,416 points, led lower by banking stocks.

Gulf Finance House and Ithmaar Bank ended 10 percent and 9 percent lower respectively.

Oman's main index closed 6.7 percent down at 7,702 points, led by lower by banking stocks.

Bank Muscat and National Bank of Oman ended 8.72 percent and 9.9 percent lower respectively.

The Saudi benchmark plummeted nearly 10 percent in early trading, with banking stocks and petrochemicals the hardest hit.

Al Rajhi Bank, Samba Financial Group and Banque Saudi Fransi plunged 9.4 percent, 9.6 percent and 9.7 percent respectively.

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