UAE residential real estate market outlook remains 'weak', says Moody's | ZAWYA MENA Edition:
Ratings agency Moody's has said that it expects loan losses at banks in the United Arab Emirates to increase over the next 12-18 months as a result of a weakening construction and real estate market.
The agency said in a note on Tuesday that lending to real estate firms increased to 20 percent of total lending at the end of 2018, up from 16 percent at the end of 2015, and added that these sectors have, in the past, "contributed materially to banks' problem loans".
The agency's note cited ReidIn data which said that prices in the Dubai and Abu Dhabi residential markets have declined by 23 percent and 18 percent respectively since 2018. Assistant vice-president Lahlou Meksaoui said in a briefing to journalists on Tuesday morning that the "domestic real estate market outlook is weak".
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