Dubai’s index fell to its lowest rate for more than two weeks because of Dubai World’s less than expected interest rate offer that it has just offered to certain sectors of its outstanding creditors. Dubai world offered its creditors a much lower than anticipated interest rate on repayment of its debts of just 1%. It was then reported that Creditors were less than impressed and subsequently refused this offer citing it as being far too low.
Analysts predicted that the Dubai World restructuring deal news will adversely affect the markets for the short term duration this week.
Another blow for the markets came when US regulators charged Goldman Sachs Group with fraud in relation to unsavory dealings in relation to subprime mortgages. This caused the markets to plummet on Friday. Following this there was a report released by a local daily paper which stated that a certain company had relinquished on a bid to build a tower in Saudi Arabia and this caused Arabtec to slump by more than 5.5%.
Emaar Properties also fell by almost 4% and Emirates National Bank Dubai decreased in value by 2%. Subsequently Aldar Properties fell by nearly 5% and this helped to cause Abu Dhabi’s index to fall by 1% down to 2,828 points.Paul Holdsworth, Staff Writer, Gulf Jobs Market News