![Electronic boards displaying stock information are seen as investors look on on the floor of the ADX Abu Dhabi Securities Exchange stock market [Twitter]](https://i0.wp.com/d2.middleeastmonitor.com/wp-content/uploads/2020/03/UAE.png?fit=920%2C613&ssl=1)
Shares in the United Arab Emirates stock exchanges starting from Wednesday will be allowed to drop a daily maximum of 5% from their previous day closing price, state news agency WAM reported.
It cited a decision by the UAE’s Economy Minister Sultan bin Saeed al-Mansouri as saying the stock market could increase the limit to 7% for select stocks based on criteria that need to be approved by the Securities and Commodities Authority (SCA). The minister is also the chairman of SCA.
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The decision is valid as of Wednesday’s trading session until further notice from the authority, it said.
Stocks were allowed a daily 10% drop earlier.
The decision comes amid market volatility in regional markets due to the impact of the coronavirus outbreak and plunging oil prices.
![Cornavirus is affecting the world's economy - Cartoon [Sabaaneh/MiddleEastMonitor]](https://i0.wp.com/www.middleeastmonitor.com/wp-content/uploads/2020/03/IMG_0460-1200x750.jpg?resize=920%2C575&ssl=1)
Cornavirus is affecting the world’s economy – Cartoon [Sabaaneh/MiddleEastMonitor]