The United Arab Emirates needs to develop rules and institutions allowing banks to control and oversee mortgages effectively, which would help manage risks and encourage property lending, the Gulf state's central bank governor said on Wednesday.
The bank asset quality in the UAE has deteriorated in the short term due to oversupply as number of completed projects entered the market and the Gulf oil producer faces several challenges to reduce the risk, Sultan Nasser al-Suweidi said.
"The UAE has several challenges. Among them is the need for banks and other financial institutions to establish policies regarding real estate financing risk and oversight," Suweidi told a conference on developing housing finance in the region.
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