Dubai's property stocks decline moderately in early trade, weighing on the emirate's index, after the
United Arab Emirates central bank introduced caps on mortgage loans for foreigners and nationals.
The maximum loan to value ratio for mortgage loans to individuals was capped at 50 percent for expatriates and 70 percent for UAE citizens, a central bank circular seen by Reuters said.
Leading real estate developer Emaar Properties drops 1.0 percent while contractor Arabtec falls 0.9 percent. Developer Union Properties bucks the trend, climbing 1.5 percent. The main market index falls 0.3 percent.
The impact of the new rules on stock prices is modest partly because it is still unclear to what extent the regulations will be enforced; previous rules announced by the central bank have been suspended after protests by commercial banks.
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