UPDATE 1-UAE c.bank proposes new real estate lending rules for banks - Reuters:
The United Arab Emirates’ central bank has proposed new regulatory measures to prevent banks from over-exposure to real estate and to encourage them to maintain diversified assets. The UAE, home to the world’s tallest tower, the Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices.
The government is implementing new measures to bolster the real estate sector including stimulus packages and allowing foreigners to own freehold property in Abu Dhabi. Dubai granted freehold ownership in 2002.
The redesigned measures are expected to improve flexibility for bank lending to the real estate sector, the central bank said in a statement. It will also ensure that banks with higher real estate exposures will be subject to “supplemental regulatory requirements,” the statement said, without specifying details on the new measures or lending limits.
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