UAE real estate’s transition to new realities | GulfNews.com:
"Attending the recent release of the International Monetary Fund’s (IMF) latest ‘Regional Economic Outlook’ for the Mena (Middle East and North Africa) Region at DIFC (Dubai International Financial Centre), I felt a sense of change in the air. The key question facing the UAE real estate market as we head into 2016 is how it will adjust to the ‘new normal’ of lower oil prices and reduced government spending that now looks likely to be here for some time to come.
According to the IMF, the Middle East is facing two major economic challenges: increased fiscal pressures from a combination of lower oil prices and increased defence and security spending, and the ongoing need to create more employment (with the IMF estimating 10 million new jobs required across the region by 2020).
Before we become overly concerned, it is worth pointing out that both the region and the UAE continues to experience economic growth in line with the global average. The pace of global growth has slowed over the past six months, largely due to uncertainties in China and other emerging markets. This has resulted in the IMF revising down its forecast of global GDP growth for 2015 to 3.1 per cent (from its previous estimate of 3.5 per cent in May)."
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