Rising Dubai Real Estate Prices Pose Risk for UAE, IMF Says - Middle East Real Time - WSJ

Rising Dubai Real Estate Prices Pose Risk for UAE, IMF Says - Middle East Real Time - WSJ:



"Dubai needs to introduce further measures to shield its real estate market from an increase in speculative demand that could cloud the United Arab Emirates’ buoyant economic outlook, the International Monetary Fund said after a consultation visit to the country.



The emirate’s fast-rising property sector and the country’s continued dependence on oil-related income are the major concerns for the U.A.E., where economic growth is nevertheless expected at 4.8% in 2014 and 4.5% in the coming years as tourism continues to flourish and new large-scale construction projects are being launched, the IMF said.



Despite the U.A.E.’s solid economic outlook, the IMF identified “potential risks from rapidly rising residential real estate prices and, more broadly, from the economy’s dependence on the global oil market, despite some recent progress in economic diversification.” The U.A.E. does possess “sizeable buffers” should it need to absorb a shock, the IMF said."



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