Gov't: No cash injection for UAE stock markets

NO INJECTION: The UAE said it is not considering injecting money into the ailing stock markets. (Getty Images)

The UAE was not considering injecting money into its struggling stock markets, the Gulf state's economy minister has said.

"We are not considering it," Sultan Al-Mansouri said in comments published by UAE daily The National on Wednesday. "We are a free market and we are going to keep it open. We are not going to make the same mistakes that other economies have done."

Dubai's main index has fallen more than 65 percent this year, while Abu Dhabi's is down more than 37 percent.

The government's stance comes amid speculation among analysts that it might be tempted to intervene.

Sherif Abdul Khalek, in local institutions sales at Beltone Financial told Arabian Business: “There has been a rumour going around among traders and brokers that government related portfolios are supporting some stock. It makes a lot of sense. Adic and Mubadala could be increasing their positions.”

Shiv Prakash, equity analyst at MAC Capital, added that governments could be stepping in to boost investor sentiment and to shore up the market.

“It could be just to sustain investor confidence. Also, Sorouh and Aldar are some of the most cash rich, liquid companies in the market so helping these would keep the overall Abu Dhabi index higher.”

Kuwait on Tuesday said it has asked the Kuwait Investment Authority to set up a fund to invest in the bourse to shore up confidence.

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