After a four-hour trading session, the Abu Dhabi Securities Exchange closed 8.31 per cent lower – the worst decline in its history. The National Bank of Abu Dhabi tumbled by 9.7 per cent, amid fears that the region’s banking sector will suffer major damage. Stock markets across the UAE have been closed since Wednesday to mark the Muslim Eid al-Adha festival.
That was the day when the state-owned conglomerate Dubai World shocked the markets by asking for a six-month delay in repaying some of its debt. In Dubai on Monday, shares fell by the most since October 2008, when the banking crisis was raging. The main Dubai index fell by 7.3 per cent, with Dubai World losing nearly 15 per cent.

Abdulrahman al-Saleh, director general of Dubai’s department of finance, also said the emirate’s government will not guarantee Dubai World’s debts. “Creditors also need to take part of the responsibility, they think Dubai World is part of the government, which is not correct,” he said.