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Tue 16 Dec 2014 04:05 PM

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UAE economy minister reassures investors after bourse plunge

Sultan bin Saeed al-Mansouri says ups and downs in stock markets are normal, likely to resume upward trend

UAE economy minister reassures investors after bourse plunge
Sultan Saeed Al Mansoori, the UAEs Economy Minister.

Ups and downs in stock markets are normal and markets tend eventually to resume their upward trends, United Arab Emirates economy minister Sultan bin Saeed Al Mansouri said on Tuesday.

Mansouri, who is also chairman of the Securities and Commodities Authority, the UAE's market regulator, was issuing a statement to reassure investors after the country's stock markets plunged on Tuesday, partly in response to sliding oil prices.

Dubai's main equities index closed 7.3 percent lower, bringing its losses this month to 28 percent, while the Abu Dhabi market tumbled 6.9 percent.

Mansouri said the UAE's economy and corporate profit growth were strong, and that oil's share of the economy was less than 30 percent.

He urged investors to base their decisions on careful analysis and act rationally. He did not announce any concrete new steps to support the markets.

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Kdmdkkf 5 years ago

UAE blue chip stocks are cheap now. Dividend returns will be excellent. It's a great time to enter, probably the last chance for investors to buy at such low prices! He's right, proper analysis needs to be done and eventually people will realize that companies like Emaar and Emaar Malls, etc are still highly profitable and not linked to oil prices.

Simon 5 years ago

I think you will find if 'proper' analysis is done as you suggest, there are many reasons not to invest and to sit on the side until the smoke clears.

Oil not linked to the property segment of the economy? Are you sure about that? Are you sure that Oil that makes up 30% of the UAEs budget is NOT to be considered when investing into companies here? The Oil sector that is still a major employer across the UAE?

30% is a huge part of the GDP and one that if effected, effects all. DFM companies are not as strong as you glibly suggest...