Analysts believe Borse Dubai could struggle to sell its stake in the London Stock Exchange, as equity and derivatives markets in the Gulf reopened to huge losses yesterday and today after the Eid ul-Adha closure.
Fears that Dubai entities, notably property company Nakheel, could default on their debts have rocked confidence in the emirate since last week, and have shaken confidence in neighbouring states and other emerging markets. Borse Dubai, the company that owns the Dubai Financial Market and 67% of Nasdaq Dubai, is expected to have to sell its 22% stake in the LSE Group to raise capital.
Sheikh Mohammed bin Rashid al Maktoum, ruler of Dubai, today told reporters that international investors “do not understand anything”.
The Dubai government has reacted unapologetically to the fallout from last Wednesday’s statement by state-owned holding company Dubai World, which asked investors for a standstill on payments on a $3.5bn...