The stock markets in Dubai and Abu Dhabi fell by over 7% and 8% respectively. The declines came after Dubai's property developer, Nakheel, asked for trading of some of its Islamic bonds to be suspended.
Shares were traded for the first time since the giant emiare-owned company Dubai World asked for an extension on repaying its debts.
Dubai's Financial Market Index lost 7.3% to 1,940.36 points after the four-day break for the Eid holiday. All the 25 shares in the market fell. The giant Emaar property firm lost 9.86%. Shares of Dubai Islamic Bank fell by 9.96%.
Shares on the Abu Dhabi Securities Exchange index crashed by 8.31%. Construction stocks dropped by 8.13%, the real estate sector fell by 9.9% while the banking shares went down by nearly 8%.