A real estate and hospitality Company owned by the emirate's ruler posted a full-year loss, which led to Dubai shares fell to a more than 14- month low. The developer of the world's tallest skyscraper, Emaar Properties PJSC, slumped to the lowest in almost three months.

Arabtec Holding PJSC dropped to the lowest level since Dec. 13. National Central Cooling Co., also tumbled. It is a refrigeration Company which delayed payments on an Islamic bond last week. The DFM General Index came down to the lowest since March 2009. It retreated 3.1 percent to 1,531.15. At about 2:46, the Bloomberg GCC 200 Index of 200 Companies in the Gulf slid 1.2 percent.

Paul Cooper, Managing Director at Sarasin-Alpen & Partners Ltd. in Dubai said, "Investor sentiment was already low, so this announcement simply doesn't help".

A debt of $109.3 billion has been racked by Dubai's Government and its state-owned companies, and as a matter of fact, about $15.5 billion of that is due this year, as per the International Monetary Fund estimates.

One of the emirate's three main state- owned business groups, Dubai World reached an agreement with a group of creditors to streamline $23.5 billion of liabilities.

Emaar dropped 6 percent to 3.15 dirham, which is the lowest level since March 4. Tabreed fell 8.5 percent to 35.6 fils, which is the lowest since October 2002.