MSCI bid fails to fuel rally in Abu Dhabi, Dubai shares

Dubai: The UAE stock markets fell yesterday amid a general lack of enthusiasm over the UAE's bid to be reclassified as an emerging market by index compiler Morgan Stanley Capital International (MSCI).

The Dubai Financial Market General Index dropped 0.57 per cent to 1,385.07 and Abu Dhabi's bourse slipped 0.24 per cent to 2,442.82.

The UAE and Qatar have applied for an upgrade from their current frontier ranking. The pair have already been turned down twice for an upgrade, while in June this year MSCI postponed its verdict for another six months.

An upgrade could lead to a much-needed surge in liquidity in both countries. But six months ago, MSCI said the issue of foreign ownership limits remained a concern, especially in Qatar.