Dubai Shares Slumps to Lowest in Two Weeks on Global Growth Risk, Oil Drop

Dubai stocks fell to the lowest in almost two weeks after slower-than-estimated growth in personal incomes in the U.S. heightened concern the global recovery is faltering and as oil dropped. Saudi shares advanced.

Emaar Properties PJSC, builder of the world’s tallest skyscraper in Dubai, retreated a second day. Dubai Islamic Bank PJSC lost 1.1 percent. The DFM General Index slipped 0.5 percent to 1,483.67, the lowest since Aug. 18, at the 2 p.m. close in Dubai. The measure declined 1.9 percent this month. Riyad Bank, Saudi Arabia’s third-largest lender by market value, surged 4.6 percent. Saudi Arabia’s Tadawul All Share Index gained 0.6 percent to 6,106.42, trimming the monthly loss to 2.8 percent.

“Poor economic reports out of the U.S. have a negative impact on the market,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second-largest lender by assets. “Volume is low, indicating that investors are on the sidelines. During Ramadan, business is usually slow in the Gulf.”

U.S. stocks declined yesterday after government data showed personal incomes climbed 0.2 percent in July, less than the 0.3 percent projected in a Bloomberg survey of economists. The Standard & Poor’s 500 Index slipped 1.5 percent. European stocks slumped before reports on U.S. property values and consumer confidence that may indicate threats to the recovery in the world’s largest economy are mounting.

Oil Declines

Crude oil for October delivery decreased as much as 1.7 percent to $73.41 a barrel in electronic trading on the New York Mercantile Exchange, headed for its first monthly decline since May. Prices have tumbled 6.6 percent in August. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.

The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, began Aug. 11. About 31 million shares traded in Dubai today, compared with a six-month daily average of 154 million.

Emaar retreated 0.6 percent to 3.26 dirhams, the lowest since Aug. 25, and Dubai Islamic Bank, the United Arab Emirates’ largest Shariah-compliant bank, slipped the most since Aug. 12 to 1.86 dirhams.

Aabar Investments PJSC slipped 2.6 percent to 1.52 dirhams, the lowest since July 15. The Abu Dhabi government-controlled company sought the market regulator’s approval to delist its shares from the Abu Dhabi Securities Exchange from Sept. 8.

Riyad Bank surged the most since Jan. 17 to 27.4 riyals. Saudi Arabia’s Tadawul All Share Bank Index rose 1.8 percent, the most in more than a month.

“Heavy buying flow targeted the banking sector as bargain hunters took advantage of the recent market pull back,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh.

The Bahrain All Share Index fell 0.3 percent while Kuwait’s gauge gained 0.3 percent. Oman’s benchmark stock index dropped 0.1 percent and Qatar’s QE Index rose 0.1 percent. Abu Dhabi’s ADX General Index was little changed. The Bloomberg GCC 200 Index of Persian Gulf stocks declined 0.8 percent in August.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net or

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