Why Did The Dubai Stock Market Crash?

Dubai Stock Market has fallen more than 25% since it’s peak in May.  It looks more like a property bubble now. The fundamentals of Dubai housing market remain risky. The last boom was fueled by islands dredged out of sand. The boom ended in 2008. This boom started in 2012 with a new plan and since than the stocks had risen by more than 250%.

The Dubai Financial Market has been taking a beating for weeks, and news of firings at Arabtec (ARTC:UH), the United Arab Emirates’ largest listed builder, caused a new round of panic yesterday. Shares in the stock exchange fell 6.7 percent, to 4,009.01, leaving them down 25 percent from their May peak. It was the end of a long bull market: Since June 2012, shares in the emirate had climbed 250 percent.