Dubai exchange nosedives as trading resumes

Dubai’s main stock exchange dropped nearly 6% today, the first day of trading since the city-state went public with its huge debt crisis.

Shares in debt-ridden Dubai World were off more than nearly 15% in early trading when the market opened.

The drop mirrored the turmoil on world markets after Dubai authorities announced last Wednesday that Dubai World, the emirate’s investment and development engine, would seek a six-month delay in paying creditors on nearly £36bn (€39.5bn) in debt.

Dubai financial markets have been closed since last week because of an important Islamic holiday.

Once-booming Dubai has become the main victim of the global recession in the Gulf.