The Dubai Financial Market General Index fell to its lowest value since 2004, almost exactly two years after the emirate sparked default fears by suggesting that it could delay debt payments.
The index closed down 0.30% to 1351.09, off lows of the day but still affording the day a 7-year record according to Bloomberg.
Losses were led by shares of Emaar Properties and Dubai Islamic Bank, which fell 0.79% and 0.70%, respectively.
Two years ago, the emirate’s government threatened the worst default since Argentina in 2001 when state-run investment company Dubai World requested a postponement on repayments of billions of dollars in debt. The company ultimately decided to restructure $25 billion of its debt burden.
Analysts are blaming European uncertainty for the emirate’s falling shares. The cost of insuring Dubai’s debt slipped to lows earlier this year, but investment has deteriorated as investors move their money out of emerging markets in an uncertain global economy.