Saudi stock market falls on Dubai debt crisis

The Saudi stock market fell 2.3 percent when it opened on Saturday, it’s first trading in two weeks, because of the effect of Dubai’s debt problems, reports AFP. The market later recovered, with Saudi officials emphasizing that the kingdom has limited exposure to Dubai’s debt issues.

“There is no danger to the banking system in the kingdom,” Mohammad al-Jasser, the governor of the Saudi Arabian Monetary Agency told Al-Arabiya TV on Friday. “There is no danger that should force (investors) to run away from the market,” he said.

“If we look at the total balance of all Saudi banks … exposure to Dubai World is less than 2 in a thousand,” he added.