Geopolitical woes finally hit Dubai market
The Dubai stock market DFM plummeted six per cent to close at 4,609.67 points on Sunday, July 20, halting a gaining streak that lasted for seven sessions. A mix of geopolitical factors, notably from uncertainty over the wars in Gaza, Iraq and increased tensions between Russia and the West spoiled the summer rally.
Arabtec Holding dived 9.90 per cent to AED4.46 after the DFM resumed trading in the shares. The market suspended Arabtec last Thursday and demanded clarification from its main shareholder following media reports about strategic partners’ stake, as per Securities and Commodities Authority’s instructions. Abu Dhabi-based investment fund Aabar, which holds 18.94 per cent in Arabtec said in a filing to the market that it was studying a number of strategic options regarding its investment in the firm, which built the world’s tallest tower, Burj Khalifa. Aabar is part of Abu Dhabi’s sovereign wealth fund IPIC (International Petroleum Investment Corporation) that manages the petro-dollar assets of the UAE capital.
The shares of Gulf General Investment Company, better known as GGICO, dived 10 per cent (limit down), while Emaar outperformed the market index as the developer fell by 4.52 per cent, finishing Dubai’s black Sunday at AED9.50. Only IFA Hotels and Resorts from Kuwait gained in value, ending 9.52 per cent higher at AED0.805.