UPDATE 1-UAE banks' loan losses to rise on real estate - Moody's | Reuters:
Banks in the United Arab Emirates are expected to experience a rise in loan losses over the next 12 to 18 months as a decline in real estate prices and rising interest rates reduce borrowers’ cash flow, Moody’s said on Tuesday.
Residential property prices in Dubai have been falling since 2014 on high supply and weaker demand, forcing construction and engineering firms to cut jobs and halt expansion plans.
Increased lending to the sector, partly due to the construction of large developments and infrastructure projects ahead of Dubai’s Expo 2020, has coincided with the market downturn, said Moody’s.
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