Tumbling property prices will stymie gains on markets in the United Arab Emirates, but for medium- to long-term investors downside risks are limited and local stocks are among the cheapest in the region.
"UAE markets will remain under pressure because of real estate. Most listed companies are exposed directly or indirectly, whether they are developers, contractors or banks," said Shahid Hameed, Global Investment House head of asset management for the Gulf region.
"Real estate tends to have a long cycle - the UAE is now three years into a correction and there are probably another couple of years to come. That will keep the economy under pressure, especially in Dubai, and perpetuate negative sentiment on UAE markets."
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