DUBAI - Shares in Dubai's giant property developer Emaar dropped the maximum-allowed 10% on Monday as stocks in the United Arab Emirates and elsewhere in the Gulf took a fresh tumble.

The Dubai exchange slumped by almost six percent and Abu Dhabi's market dropped more than 1.5%, after both rose on Sunday.

Emaar, developer of the world's tallest building, Burj Dubai, led the downward charge in the Dubai Financial Market. Emaar shares dropped the maximum 10% within the first three hours of trading.

The company's shares had closed 3.55% up on Sunday, following heavy losses last week.

The DFM fell at the close by 5.84% to 1,744.83 points, a day after a rise of 1.18% from last week.

The Abu Dhabi Securities Exchange dropped 1.68% to 2,628.24 points at the close of trading on Monday, a day after having closed up a hefty 3.89% at 2,673.12 points.

Saudi Arabia's exchange also fell, dropping 0.66% on Monday. Its TASI index closed 0.33% up on Sunday at 6,309.05 points, but fell to 6,267.42 in trading on Monday.

The Kuwaiti stock market was likewise down, closing 0.79% lower, at 6,678.9 points, while Bahrain's exchange dropped slightly, closing at minus 0.07%.

Bucking the trend, Qatar's exchange rose 1.06%, closing at 7,132.26 points on Monday.

Both the Dubai and Abu Dhabi markets suffered heavy losses last week over Dubai's debt troubles. The Dubai index plunged 12.5% over a two-day trading period, while Abu Dhabi's slumped 11.6%.

The sharp falls came after Dubai on November 25 requested a freeze of payments on the debt of its largest conglomerate, Dubai World, which is liable for $59 billion.

The request raised fears of a debt default by Dubai and sent jitters through global financial markets. The emirate's debts are estimated to total at least $80 billion, with some estimates as high as $120 billion.

On Monday, Dubai department of finance head Abdulrahman al-Saleh said Dubai World could sell some of its assets in the United Arab Emirates and abroad to strengthen its financial situation.

"The sale of assets is a normal measure to strengthen the group's financial situation in these circumstances," Saleh said in an interview with Al-Jazeera television.

He also reiterated the Dubai government does not guarantee Dubai World's debts, but said the "Dubai Financial Support Fund," which he chairs, "has helped companies affected by the financial crisis, including Dubai World."

Source: AFP