The past five trading days has seen Dubai's stock market suffer its worst week this year - losing a quarter of its value. The Dubai Financial Market closed down at 2106.14 yesterday, a weekly fall of nearly 700 points, leaving the market at its lowest level since November 2004. The DFM is now heading towards 1,000, the level at which it launched at the start of 2004.
The DFM slumped 4.9 per cent yesterday, while the Abu Dhabi Securities Exchange lost 1.5 per cent of its value.
The worst-hit sector has been property. The DFM's index of property companies collapsed in value by 34.8 per cent this week, while the ADX's own tracker of developers has declined 25.2 per cent. At the same time, property prices in Dubai are plummeting.
Paul Davies, the head of real estate for the Middle East at law firm Denton Wilde Sapte, said: "Off-plan prices have fallen substantially, particularly for projects where completion dates are a long way off. These properties were popular with speculators, but this market is now very dead. There continues to be strong demand owing to population pressures, but the availability of finance is the problem. Finance providers have tightened credit criteria as they seek to reduce exposure to the sector and tackle their own liquidity problems."
Shares of banks and financial companies have been following suit. The DFM's financial and banking index fell by 20 per cent this week, while the same ADX index declined 15.7 per cent.
However, as Ali Khan, the executive director at Arqaam Capital in Dubai points out, not all banks and financial companies have been so affected. Mashreq Bank, listed on DFM, has barely moved since June because its stock is so illiquid.
In June its share price was Dh280 (US$76.2) and it is now Dh270, according to Mr Khan, because its stock holders are simply not selling.
Some shares even launched a mini-rally late in the day. Aldar Properties, the largest developer in Abu Dhabi, ended the day up 2.6 per cent after a HSBC research report described the company as a "shelter for investors". Its shares rose to 4.3 dirhams. Sorouh Real Estate, Abu Dhabi's second-largest developer, gained as much as 5.6 per cent before closing 0.8 per cent down at 2.66 dirhams.
According to the HSBC report, Abu Dhabi has the cash liquidity to support its banks and property companies if needed. Abu Dhabi Investment Authority is the world's largest sovereign wealth fund with assets of between $250 billion and $850bn, according to the International Monetary Fund.
"We continue to believe that Abu Dhabi, particularly Aldar, is likely to offer the best shelter for investors, while providing good appreciation potential," the HSBC report said. "We prefer Aldar because of its strong ties with the Abu Dhabi Government, which we believe is likely to provide support in case of need."
Mandagolathur Raghu, the head of research at Markaz in Kuwait, said the market movements were "unexplainable, illogical" and "unprecedented", and that it was hard to see where prices were heading because of the absence of price discovery.
The Saudi Tadawul was closed yesterday and the Kuwait exchange was suspended until Monday because of a court order that sought to protect small investors from losses.
In other market news, Doha fell 2.6 per cent, Muscat dropped by 2.38 per cent and Bahrain lost 0.87 per cent of its value.
afoxwell@thenational.ae
Liverpool's all-time goalscorers
Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Black Panther
Dir: Ryan Coogler
Starring: Chadwick Boseman, Michael B Jordan, Lupita Nyong'o
Five stars
