DUBAI: Dubai stocks hit a 27-month low on Thursday on the back of sharp falls in the real estate market and a drop in liquidity levels.
The Dubai Financial Market Index ended the day’s trading down 1.83 percent on 2,947.99 points breaching the 3,000-point psychological barrier.
The Dubai bourse, the most exposed to the global markets in the Gulf region, dropped 3.1 percent by the close of the Muslim trading week.
The market has shed 12.5 percent since the start of the year as cash injections dropped sharply, with the main fall coming from the vital real estate sector.
“Dubai market has underperformed its (Gulf Cooperation Council) GCC markets losing over 12 percent (YTD) dragged by the sell-off in Real Estate sector,” M.R. Raghu, head of research at Kuwait Financial Center (Markaz) said.
Most of the seven Gulf bourses have made good gains in 2018 due to a partial recovery in oil prices, with Saudi stocks rising 12 percent.
“Fundamentally, the real estate prices have been falling and the market has been sluggish,” Raghu told AFP.
Dubai real estate witnessed a 46 percent fall in off-plan sales by value in the first quarter, and a 24 percent decline in previously owned resales, he said.
The real estate sector is one of the main pillars for Dubai’s highly diversified economy, which is not dependent on oil.
The index of the real estate sector on Dubai bourse has shed around 18 percent since the start of the year with property giant and market leader Emaar dropping 22 percent.
Damac Properties, a leading real estate developer, was down 26 percent and troubled Drake and Scull International shed 50 percent since January 1.
A massive fall in liquidity levels and reports that international investors, an important component in the market, have moved to Saudi Arabia, are other causes for the downturn, analysts said.
According to local economic reports, liquidity levels dropped a massive 35 percent in April alone.
Dubai stocks dive to 27-month low on real estate woes
Dubai stocks dive to 27-month low on real estate woes
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
