The Dubai Financial Market plummeted 3.5 percent Sunday and closed at 1,617.51 points after the cost of Credit Default Swaps, used by market participants to insure Dubai’s debt, rose to the highest level since last November.
In November 2009, state-owned conglomerate Dubai World asked for a six-month standstill on its 26 billion U.S. dollars debt, but since then no substantial news has been come up.
Meanwhile, worries about the critical debt situation in the Euro zone’s Club Med countries –Greece, Spain and Portugal– keep market worry about the situation in Dubai.
Market bellwether Emaar Properties closed 5.88 percent lower at 3.04 Dirham (about 0.82 dollar). Air Arabia, which started in 2004 as the first budget airline in the Middle East, lost 3.13 percent, ending at 0.93 dollar.
Air Arabia has reported an 11.27 percent decline in net profits of 452 million dirhams (about 123.25 million dollars) for 2009. (PNA/Xinhua)