Font Size

- Aa +

Tue 16 Dec 2014 10:56 AM

Font Size

- Aa +

Dubai tumbles to one-year low on weak oil

Big names such as Emaar Properties, Arabtec and Dubai Islamic Bank continue to fall

Dubai tumbles to one-year low on weak oil

Dubai's stock market fell sharply in early trade on Tuesday after oil resumed its slide on bearish comments about OPEC and weak Chinese manufacturing data.

The Dubai benchmark tumbled 6.63 percent to 3,104 points, a one-year low, as most stocks declined.

Burj Khalifa developer Emaar Properties fell 7.79 percent, while Arabtec was down 8.14 percent. Dubai Islamic Bank also tumbled 9.11 percent, while government investment vehicle Dubai Investments was down 8.81 percent.

Abu Dhabi's index dropped 2.8 percent and Kuwait's market fell 1.4 percent.

Brent crude traded below $61 per barrel early on Tuesday after United Arab Emirates Oil Minister Suhail Bin Mohammed al-Mazroui said late on Monday there was no need for an emergency OPEC meeting.

Also negative for the oil market was fresh data which showed that activity in China's factory sector shrank for the first time in seven months in December.

Although Dubai exports only a small amount of oil, investors fear reduced export revenues in the Gulf could prompt governments to slash spending and slow the regional economy, which Dubai serves as a financial and commercial centre.

For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.