Dubai's stock market crashes
Dubai's stock market crashes
Shares in Dubai's stock exchange fell 6.7 percent today, down to 4,009.01, on news that Arabtec, the United Arab Emirates' largest building firm, was laying off workers. Arabtec is known for its wildly ambitious construction projects, including the world's tallest building, the Burj Khalifa, and more recently a plan announced in 2012 to build a complex that includes the world's largest mall and 100 hotels.
Dubai has been in something of a boom in the last couple of years. Since June 2012, shares in Dubai climbed 250 percent and real estate prices have shot up a world-leading 27.7 percent in the last year. Dubai's government tried to cool the boom by restricting mortgages to 60 percent of a property's price, but rather than steadying growth this appears to have backfired. Dubai's markets have now been falling for the last couple of months, leaving them down 25 percent from their May peak.
But the slump may not last. The United Arab Emirates is one of the safest and most stable places in the Arab world, and with the region erupting into turmoil, Dubai may be seen as something of a safe haven. As Drake Bennett at Businessweek argues: "There aren't many stable places for Arab investors to put their money. Compared with civil war and marauding jihadis, a potentially overheated property market seems pretty unthreatening."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
John Aziz is the economics and business correspondent at TheWeek.com. He is also an associate editor at Pieria.co.uk. Previously his work has appeared on Business Insider, Zero Hedge, and Noahpinion.
-
Nobody seems surprised Wagner's Prigozhin died under suspicious circumstances
Speed Read
By Peter Weber Published
-
Western mountain climbers allegedly left Pakistani porter to die on K2
Speed Read
By Justin Klawans Published
-
'Circular saw blades' divide controversial Rio Grande buoys installed by Texas governor
Speed Read
By Peter Weber Published
-
Los Angeles city workers stage 1-day walkout over labor conditions
Speed Read
By Justin Klawans Published
-
Mega Millions jackpot climbs to an estimated $1.55 billion
Speed Read
By Catherine Garcia Published
-
Bangladesh dealing with worst dengue fever outbreak on record
Speed Read
By Catherine Garcia Published
-
Glacial outburst flooding in Juneau destroys homes
Speed Read
By Catherine Garcia Published
-
Scotland seeking 'monster hunters' to search for fabled Loch Ness creature
Speed Read
By Justin Klawans Published