After hitting a five-month high in the previous day, the Dubai Financial Market lost 1.61 percent Wednesday, closing at 1,673.69 points.
Emaar Properties was down 2.86 percent to close at 3.73 dirhams (1.02 U.S. dollar). Investment bank Shuaa Capital surged 4.67 percent to close at 1.12 dirham (0.31 dollar). Shuaa shares are among the 21 shares of the United Arab Emirates (UAE) which were upgraded to part of the FTSE Global Equity Index Series.
Shares of bank Emirates NBD lost 1 percent, finishing at 2.85 dirhams (0.78 dollar). Emirates NBD CEO Ahmed Humaid Al Tayer told Xinhua that his bank and the other banks in the UAE are prepared to fulfill the new capital rules Basel III which the Bank of International Settlement currently designs.
“Basel III was recently announced, and we are examining the proposed rules closely with the UAE central bank and I am confident that they will comply with it,” Al Tayer said.
The implementation of Basel III will force banks from 2013 on to more than triple to 7 percent the amount of top quality capital they must hold to withstand shocks without state aid. As there is no “world government” which can enforce Basel III, its implementation can only be enforced on a national level in each state.