Dubai stock index drops on opening after Qatar rift

Dubai’s stock index dropped 0.7 per cent in the first 10 minutes of trade on Monday after UAE, Saudi Arabia, Egypt and Bahrain severed ties with Doha, accusing it of supporting terrorism.

The Gulf Cooperation Council states do little merchandise trade with each other, instead relying on imports from outside the region, and Qatari investment in the other GCC stock markets is believed to be tiny, no more than a few percent of total capitalisation.

But the diplomatic rift hurt sentiment in Dubai and other GCC markets as it could complicate business deals and fund flows around the region.

Abu Dhabi’s stock index fell 0.4 per cent while Qatar had not yet started trading.