DUBAI, United Arab Emirates (AP) – Dubai’s main stock market and Abu Dhabi’s index closed on Tuesday at their lowest points of the year amid mounting anxiety over plunging oil prices.
Dubai’s stock market lost 7.3 percent on the day, while Abu Dhabi’s slid 6.9 percent. Also Tuesday, Saudi Arabia’s stock market fell 7.3 percent.
Gulf equities have been falling since late November, while oil prices have shed nearly half their value since late June. Benchmark U.S. oil prices closed below $56 a barrel on Monday, their lowest level since May 2009, when the U.S. was still in recession. Brent crude prices fell below $60 a barrel, also their lowest since mid-2009.
Investors are concerned that the drop in the price of oil, which is the backbone of Gulf economies, could lead to less government spending and reduced economic growth.
Allen Sandeep, director of research at Naeem Holding, said people are concerned about budget deficits for the coming financial year.