Resurgent U.A.E. Ponders Steps to Prevent Rerun of 2008’s Crash - Bloomberg

Resurgent U.A.E. Ponders Steps to Prevent Rerun of 2008’s Crash - Bloomberg:

"Five years after the United Arab Emirates began its steepest economic slump in two decades, a rebound has left policy makers pondering ways to avert a recurrence of the overheating that turned boom into bust.
Boxed in by a currency peg that rules out using interest rates to regulate credit flows, the nation’s central bank plans to impose some borrowing curbs and tighten rules on mortgage approvals, according to the chairman of the U.A.E. Banks Federation, Abdul Aziz Al Ghurair. It will also set up a credit bureau to control lending.
The period preceding the U.A.E.’s slowdown “is remembered as being a real-estate cycle,” Simon Williams, the Dubai-based chief Middle East economist at HSBC Holdings Plc, said in an interview Oct. 8. “That’s not all it was. It was also a credit cycle, and it will be the readiness of policy makers to curb the pace of credit growth that will determine how successful they are in avoiding a repeat.”"

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