Dubai's main stock market says it is buying another exchange run by Nasdaq in the struggling Arab boomtown in a deal it valued at $121 million.

Dubai Financial Market said Tuesday it is offering to buy the Nasdaq Dubai from the bourse's parent Nasdaq OMX Group to broaden its offerings to investors and further link the two exchanges.

The deal follows a sharp drop in local markets after Dubai shocked investors with word it was seeking to restructure $26 billion in debts held by its main state-run conglomerate.

Under the terms of the cash-and-stock deal, Nasdaq OMX will hold a 1 percent stake in the DFM and let Nasdaq Dubai continue to use its name and technology.