Dubai Financial Market hit by China worries



UAE investors took little comfort from signs of stabilising European and US stocks on Monday, as shares in Dubai and Abu Dhabi continued their miserable start to the year.

European shares were up yesterday afternoon despite a fresh sell-off across Asia, as investors believe that fears over China’s economy have been overplayed. The S&P 500 was down 1.0 per cent in its first hour of trade.

In UAE trading, the Dubai index lost ground, as it has on all seven trading days this year. The Abu Dhabi index also fell, as it has on five of the year’s seven trading days.

Shares in Dubai closed down 0.7 per cent at 2,942.24.

Emaar Properties bore the brunt of yesterday’s sell-off, ending down 1.5 per cent at a new two year low of Dh5.04.

Arabtec was the pick of a handful of gainers, closing up 6 per cent at Dh1.23 on news of a Dh2 billion contract with Aldar Properties for the construction of 1,017 villas on Yas Island. Aldar shares, listed in Abu Dhabi, ended the day unchanged.

Abu Dhabi’s headline index ended down 1.3 per cent at 4,085.53, dragged down by FGB, ADCB and RAKBank.

Shares in Saudi Arabia rose 1.4 per cent, as the Saudi Arabia Monetary Agency pledged to maintain its currency peg to the US dollar.

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Sugary teas and iced coffees

The tax authority is yet to release a list of the taxed products, but it appears likely that sugary iced teas and cold coffees will be hit.

For instance, the non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.

Cold coffee brands are likely to be hit too. Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.