A UAE trader is warning that financial markets are entering a "full-blown crisis" as oil prices plummet.
Dubai's main stock market and Abu Dhabi's index have closed at their lowest points of the year amid mounting anxiety.
There have also been further losses in Egypt.
In the red.
With oil prices dropping, Middle East financial markets are following suit.
Dubai's stock market has lost 7.3 percent today, while Abu Dhabi's index slid 6.9 percent.
Gulf equities have been falling since late November, while oil prices have shed nearly half their value since late June.
Benchmark US oil prices closed below 56 US dollars a barrel on Monday, their lowest level since May 2009, when America was still in recession.
Also today, Saudi Arabia's stock market dropped 7.6 percent.
Investors are concerned that the drop in the price of oil, which is the backbone of Gulf economies, could lead to less government spending and reduced economic growth.
"The situation is very pessimistic right now. The fact that the prices dropped to this level is really bad. We lost a really big part of our capital in the market and clears out many of the traders and everyone is feeling very pessimistic," says Fadi Ajaj, Trading Manager at Al Sharhan Stock Centre, who's at the DFM.
"We have seen a drop like this since the global financial crisis in late 2008, early 2009. This seems to be very similar to it and I think that the severe drop could lead to a crisis."
Arabtec, Dubai's largest construction company, and Dubai Investments (DIC), a major investment company listed on the Dubai stock exchange, were down 9.8 percent by closing today.
Emaar, the developer behind the world's tallest tower in the United Arab Emirates, lost 10 percent of its market value.
The last few weeks have been tough for the traders here in Dubai.
"It seems like that it is snowballing. The more it drops the bigger the crisis seems. What is happening here in the Gulf markets and our local markets is not just a drop. We are entering a full-blown crisis," says Ajaj.
In Egypt, the benchmark EGX 30 fell by 3.58 percent today - opening at 8,832 points and closing at 8,515.
It follows a flurry of losses over recent days.
"At the beginning of the week, there was a clear drop in the EGX 30 index, and it is the benchmark index, of almost five percent," says dealer Nagla' Farrag.
"It's being affected by Arab and international markets, also at the same time we are in December, where a lot of positions are being closed."
She continues: "We cannot say the we will recover our losses in this phase, because the drop is always faster than the climb. In December it is unlikely that there will be a strong rise or rebound.
"So we hope that in the beginning of next year there can be a influx of investment, and the foreign markets would have evened out a bit, which will result in a gradual rise of our prices."
You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/167aea8442d5b83c9f834bf60d410254
Find out more about AP Archive: http://www.aparchive.com/HowWeWork