Dubai stocks down again

Dubai’s debt crisis was dragging down the main stock markets in the United Arab Emirates for a second day today.

The Dubai and Abu Dhabi exchanges dropped by more than 5% each in early trading.

The continued drop comes after big losses yesterday, the first day of trading in the country since last week’s bombshell announcement that Dubai’s main development conglomerate, Dubai World, was seeking a six-month reprieve from paying creditors a nearly $60bn (€40bn) debt.

The Dubai exchange lost 7.3% and Abu Dhabi was off 8.3% yesterday. But world markets were rebounding amid increased confidence that Dubai’s fiscal crunch was unlikely to derail the global recovery.