Emaar, the developer of the world's tallest tower that opens today, dropped 3.4 per cent after surging the most in three weeks yesterday.

DFM, the only Gulf bourse to sell shares to the public, fell the most since December 29.

Dubai's DFM General Index lost 2.6 per cent, the biggest retreat among global benchmark indexes tracked by Bloomberg, to 1,817.13. The measure jumped 3.4 per cent at the weekend.

"Its only natural to see profit-taking at the end of a few strong sessions," said Ahmad Shahin, equity strategist at Shuaa Capital PSC in Dubai.

"Stocks have been rallying mainly on positive sentiment related to the anticipation of the opening of the Burj Dubai."

Emaar fell to 4.02 dirhams. The United Arab Emirate's (UAE) largest developer spent five years building the $1.5 billion Burj Dubai, during that time the sheikhdom's debt-fueled property market has gone from the world's best performing to the worst, forcing officials to renegotiate loans and seek bailouts from neighboring Abu Dhabi.

Dubai, the second-biggest of seven states that make up the UAE, and its government-owned companies borrowed $80 billion to finance its transformation into a financial and tourist hub before credit markets froze.

Dubai World, the state-owned holding company, said December 1 it wants to alter terms on about $26 billion of debt.

DFM lost 4.1 per cent to 1.89 dirhams. The shares climbed 6.5 per cent in the previous three days. Investment bank Shuaa Capital PSC, retreated 4.6 per cent to 1.45 dirhams, the lowest close since December 10.

Abu Dhabi's ADX General Index fell 0.5 per cent, Qatar's Doha Securities Market Index lost 0.7 per cent, and Oman's Muscat Securities Market 30 Index dropped 0.8 per cent.

Kuwait's market closed 1.6 per cent lower and Bahrain's declined 0.8 per cent. Saudi Arabia's Tadawul All Share Index added 0.8 per cent.

The Guardian Newspapers, Tuesday January 5, 2010.