U.A.E. Asset Bubble Unlikely as Credit Growth Slows, IIF Says - Bloomberg

U.A.E. Asset Bubble Unlikely as Credit Growth Slows, IIF Says - Bloomberg:



"A surge in United Arab Emirates property values probably won’t lead to an asset-price bubble because credit growth remains relatively modest, according to the Institute of International Finance.



Loan growth in the second-biggest Arab economy may slow to 11 percent in 2014 from 13 percent last year, the IIF said today in a report.



Property prices in Dubai climbed 35 percent in 2013, according to broker Knight Frank LLP, fueling concern that the U.A.E.’s second-biggest sheikhdom is at risk of another bust after the 2008 property crash that almost pushed it to default. 




“There are major differences between the current boom and the previous, which was more driven by speculative excesses,” Garbis Iradian, deputy director for Africa and the Middle East at the Washington-based IIF, said in the statement. “The strong rebound in housing prices has been driven by a significant improvement in the underlying economic fundamentals.”"



'via Blog this'