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The Dubai Market Dropped 25 Percent. It's Still Overvalued

Dubai’s stock market is in the midst of an epic crash. After falling 6.7 percent on Tuesday, the biggest drop since August, Dubai’s largest stock index, the DFM General Index, is down 25 percent from its peak in May.

A sell-off that steep usually presages a nice buying opportunity, but it looks as if Dubai stocks might have further to fall. Relative to other emerging market stock indices, Dubai’s remains overvalued.