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Monday, 26 April 2010

IMF backs Dubai shift to caution

The IMF is supporting Dubai’s shift to a more conservative investment strategy, steering clear of debt-led finance models.

After an “overextension” in the UAE’s property market, a pillar of the country’s rapid expansion for many years, the fund expects the sector to take a reduced role in future growth, said Masood Ahmed, the director of the IMF’s Middle East and Central Asia department.

“Government-related entities were investing with a certain amount of debt, [but] the [Dubai] Government has since signalled it will look to rationalise its future investments,” Mr Ahmed said. “For us, that’s the right approach to take.”