Summary

The falls came after Nakheel, a property develper asked to trade some of his Islamic bonds to be suspended. The shares are trading for the first time since the company, Dubai World asked for an extension on repaying its debts. The central bank of the United Arab Emirates said it would supply the banks with extra liquidity. Dubai’s Financial Market Index fell 6.9% just with the first hour of trading. Construction and financial stocks aslo fell  nearly 10%. Dubai World fell 15%.

Personal Reflection

I think that Nakheel’s decision to suspend some of his trades was a stupid decision. This really shows how much power some of the rich companies have. He makes one simple decision affected the whole economy of Dubai and some of the surrounding countries. This just goes to show why it’s nad for one person to have so much control and power.

Unknown Words

Liquidity-The degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets.

U.A.E.- Uniter Arab Emirates

Work Cited

“BBC News – Dubai stocks plunge as debt crisis fears continue.” BBC NEWS | News Front Page. Web. 30 Nov. 2009. <http://news.bbc.co.uk/2/hi/business/8385164.stm>.