Shares in Emaar Properties and builder Arabtec were among the worst performing Dubai stocks on Sunday morning, as global market turmoil over the UK vote to leave the European Union hit UAE markets hard.

Emaar shares were down 3.59% at Dh6.17 while Arabtec fell 5.71% to Dh1.32 just after noon local time.

The overall Dubai market responded negatively to the news of the Brexit, with the benchmark index down about 2.97% by early afternoon.

The historic UK vote rattled global markets on Friday, sparking fears of a global recession, sending stocks into free fall, and pushing sterling to a 31-year low.

Sunday marks the first day of trading on the UAE markets after the results of the June 23 vote emerged early on Friday morning.

It follows massive declines in UK house builders’ shares at the end of last week.

The United Kingdom could see a 15% rise in construction costs if it votes to leave the European Union, the head of London’s largest private homebuilder predicted before the historic vote.

In a letter to clients, suppliers and corporate contacts, the managing director of Galliard Homes, Don O’Sullivan, said that he believed that construction companies in the UK would be hit by increased material prices and more expensive labour.

“If the UK is not part of the EU, then industry construction costs could rise by up to 15% since currently construction materials imported from and exported to the EU are free of duty and taxes,” O’Sullivan said in the company letter issued before the vote.