Persian Gulf Shares Fall on Real-Estate Concern; Emaar Drops

By Ayesha Daya

Nov. 11 (Bloomberg) -- Persian Gulf shares declined, sending Dubai's benchmark down for a fourth day, on concern a global recession and falling oil prices will slow the region's property market.

Emaar Properties PJSC, the Middle East's biggest publicly traded developer, dropped to the lowest in four years, as HSBC Holdings Plc and Lloyds TSB Group Plc reduced lending in the United Arab Emirates amid the credit crunch. Sorouh Real Estate Co. tumbled the most in almost a month after curbing the amount of shares foreigners can own. Investment Dar Co., the Kuwait- based owner of half of Aston Martin, retreated the most in more than four years.

The Dubai Financial Market General Index fell 7.3 percent to 2,343.15, its lowest close since December 2004. The measure has tumbled 61 percent this year. The Abu Dhabi Securities Exchange General Index declined 4.9 percent, while the Kuwait Stock Exchange Index dropped 2.2 percent.

Persian Gulf countries, which used a five-year rally in oil that ended in July to boost infrastructure development in the region, may suffer as access to credit tightens and demand for new housing falls. Oil for December delivery fell as much as 5 percent to $59.32 a barrel on the New York Mercantile Exchange.

Job Cuts

``The main concern for real-estate companies is prospects for selling projects,'' Motaz Herzallah, senior broker at Emirates Securities LLC in Abu Dhabi, said in a phone interview.

Lloyds TSB, the London-based bank that entered the U.A.E. market in 1977, stopped offering mortgage loans for apartments in Dubai and reduced the amount it will lend to 50 percent of the price of a villa from 80 percent. HSBC, Europe's largest bank, will require customers in the emirate to earn at least 20,000 dirhams ($5,445) to get a personal loan.

The Dubai government is monitoring the property market and a ``high-level committee'' has been exploring initiatives to boost market confidence, Emaar Chairman Mohammed Alabbar said. Damac Holding, a closely held Dubai-based property developer, eliminated 200 jobs, or 2.5 percent of its workforce.

In Saudi Arabia, the Tadawul All Share Index retreated 5.2 percent to 5,465.85. Qatar's Doha Security Market 20 Index slumped 6.3 percent to 6,342.48, the lowest since April 2007. Oman's Muscat Securities Market 30 Index lost 2 percent, while the Bahrain All Share Index dropped 2.7 percent.

Emaar slid 9.9 percent to 3.74 dirhams, its lowest close since November 2004.

Sorouh, Abu Dhabi's second-largest property developer, dropped 9.5 percent, the most since Oct. 16, to 2.96 dirhams. Sorouh curbed its foreign-ownership limit to 15 percent from 20 percent after the stock lost 62 percent this year.

Investment Dar tumbled 12 percent, the most since May 2004, to 355 fils.

The following stocks also rose or fell in the region. Stock symbols are in parentheses after company names:

Al-Dar National Real Estate (ADNC KK) declined 8.6 percent to 53 fils. The Kuwait-based property developer said it posted a loss of 4.9 million dinars ($18.2 million) in the third quarter.

Jeezan Holdings Co. (JEEZAN KK) dropped 7.5 percent to 62 fils. The Kuwaiti property owner said third-quarter profit fell to 340,000 dinars compared with 9.8 million a year earlier.

To contact the reporter on this story: Ayesha Daya in Dubai at adaya1@bloomberg.net