(Bloomberg) -- Dubai stocks are giving investors an update on the woes confronting the local real-estate industry.
The DFM Real Estate & Construction Index fell about 7 percent last week, the biggest weekly drop since May 2016. All but one of its members were down by at least 2 percent, compared with an overall 0.1 percent retreat in an emerging-market gauge for the sector.
Oversupply is casting a cloud over Dubai developers and real-estate companies at the same time that the region confronts a slump in oil prices. Emaar Properties PJSC, the sheikhdom's biggest developer and the stock with the third-largest weighting in the local benchmark index, last month put on hold plans to sell new debt as interest rates increased. Shares of subsidiary Emaar Development PJSC had the worst week since its 2017 market debut.
Read more:
- Dubai Developers Balk at How Much Investors Want for Their Bonds
- In Dubai, Avalanche of New Homes Extends Property Slump
- Damac Properties, Emaar Malls and Emaar Development Are Seen Slumping Deeper Amid MSCI Review
- A Haven for Money in the Middle East, Dubai Is Losing Its Shine
To contact the reporter on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, John Viljoen, Paul Jarvis
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