Dubai’s stocks dropped to the lowest level in almost six months, leading a decline in the Middle East, as unrest in the region escalated with demonstrations in Libya, Bahrain, Yemen and Morocco. Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest Shariah-compliant lender, declined 1.8 percent and Emaar Properties PJSC, builder of the world’s tallest skyscraper, tumbled to the lowest in almost a year. Dubai’s DFM General Index lost 1.3 percent to 1,516.43, the lowest since Sept. 2, at the 2 p.m. close in Dubai. Abu Dhabi’s ADX General Index retreated 0.5 percent and Oman’s MSM30 Index fell 0.9 percent. Morocco’s MADEX Free Float Index dropped 0.3 percent as of 10:50 a.m. in Casablanca. “Foreign investors are exiting the region as risk increases,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second-largest lender by assets. “They are turning to markets with more political stability as the region faces this transitional period, from both a political and security perspective.” Libya, holder of the largest crude oil reserves on the African continent, has become the focal point of region-wide protests ignited by the ouster of Tunisia’s president last month and energized by the fall of Egypt’s president on Feb. 11. The Bloomberg GCC 200 Index has lost 4.9 percent since Hosni Mubarak stepped down. In Bahrain, thousands of protesters yesterday poured back into the central square after tanks, armored personnel carriers and riot police withdrew on the orders of the crown prince. In response unions called off a general strike planned for today. Unrest Spreading Demonstrations also were reported yesterday in Iran and Morocco and analysts warned of the risk of unrest spreading to Saudi Arabia, the world’s biggest oil exporter. Oil for April delivery rose for a fourth day in New York as violence escalated in Libya, bolstering concern supplies will be disrupted by turmoil in the region. Crude rose as much as 4.2 percent to $93.50 a barrel in electronic trading on the New York Mercantile Exchange. The six nations of the Gulf Cooperation Council, including Qatar and Saudi Arabia, supply about a fifth of the world’s oil. Dubai Islamic fell to 2.21 dirhams, the lowest since Feb. 1. Emaar retreated 1.3 percent to 2.98 dirhams, the lowest since March 2010. Saudi Arabia’s Tadawul slipped 0.1 percent at 1:43 p.m. in Riyadh. Jordan’s ASE General Index dropped 0.2 percent and Bahrain’s gauge declined 0.4 percent. Qatar’s QE Index lost 0.9 percent, while Kuwait’s measure rose 0.5 percent. Egypt’s bourse has been closed since the end of trading on Jan. 27. The exchange hasn’t decided when to open and found no legal grounds to cancel Jan. 27 trades, Chairman Khaled Seyam said today. -- Editors: Claudia Maedler, Shanthy Nambiar To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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