Dubai, Abu Dhabi Stocks Dive over New Financial Crisis

Shares are trading for the first time since the state-owned property company Dubai World asked for an extension on repaying its debts. Photo by ecopolis.org

The main stock markets in Dubai and Abu Dhabi have dived at least 6%.

The falls came after Dubai's property developer, Nakheel, asked for trading of some of its Islamic bonds to be suspended.

Shares are trading for the first time since the state-owned property company Dubai World asked for an extension on repaying its debts.

European markets were trading slightly lower.

The central bank of the United Arab Emirates said on Sunday it would provide banks with extra liquidity.

Dubai's Financial Market Index tumbled 6.9% to 1,948.83 in the first hour of trading after the four-day break for the Eid holiday.

Shares on the Abu Dhabi Securities Exchange index nosedived 7.4%.

Construction and financial stocks slumped nearly 10%. The debt-ridden Dubai World fell 15%.

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