Tight credit may further slash Dubai steel imports

Dubai's steel imports could drop further as the tightness in credit availability is threatening ongoing construction projects, the managing director of Abu Dhabi Metal Pipes & Profiles Industries Complex (ADPICO) said on Wednesday.

Ali Hosseini of ADPICO, one of the top steel pipe producers in the United Arab Emirates, told a steel conference organized by the American Metal Market that bank lending has become even scarcer since late last year as the housing demand in Dubai has slumped after the global recession.

"The major problem is oversupply. The occupancy rates for the properties finished are at about 25 to 30 percent. The crisis has caused a lot of people to leave the city," Hosseini said.