Stocks in Dubai and Abu Dhabi fell sharply for a second day. The Dubai Financial Market’s main index closed down 5.6% Tuesday, after falling 7.3% the previous day. Abu Dhabi shares closed 3.6% lower. Shares in Qatar and Kuwait were also hit, with benchmark measures down 8.3% and 2.7% respectively.
Abu Dhabi’s ruler and President of the U.A.E. Sheik Khalifa bin Zayed Al-Nahyan tried to ease concerns Tuesday that Dubai’s debt crisis could undermine the country’s economy. His comments fell short of an unequivocal statement of financial support for Dubai’s struggling companies.