The Global Monetary Fund has increased its 2014 financial development forecast for the United Arabic Emirates to 4.5 per cent but informed of a potential property bubble if authorities were not attentive.
The UAE's real gross domestic product increase may remain stable and in precisely the same level as now estimated for 2013, driven by impetus in petroleum sector. Oil-fuelled growth could be restricted because of an ample global offer, the IMF said on Thurs.
The UAE's real gross domestic product increase may remain stable and in precisely the same level as now estimated for 2013, driven by impetus in petroleum sector. Oil-fuelled growth could be restricted because of an ample global offer, the IMF said on Thurs.
"The real estate field in particular has found a high recovery, with prices of apartments and villas in Dubai having grown fast in selected places," stated Harald Finger, the IMF's mission leader, adhering to a staff visit. In Oct, the Dc-based lender forecast that the world's No. three oil exporter would find inflation-adjusted GDP enlarge 3.9 per cent in 2014 and four percent in 2013.
Experts interviewed by Reuters this month forecast steady 4.3 per cent increase in the UAE in 2013-2015.Increase needs to be helped by a number of mega-projects of apartments and villas in Dubai, even though their overall cost, rate of performance and financing remain unclear, and Dubai’s hosting of the Expo 2020 exhibition, the IMF additionally said. “If not executed prudently, these projects might exacerbate the danger of a property bubble," Finger stated, echoing the Fund's warnings from last Nov and June.
"Moreover, these projects may produce additional economic dangers for Dubai’s authorities-related entities (GREs) and the banking system in mild of the still significant debt overhang in the 2009 catastrophe."
Dubai and Abu Dhabi are also still discussing whether to reimburse or roll-over of 20 billion of Dubai government bonds subscribed to by the UAE key bank and banking in Abu Dhabi in '09 under a program that develops this year.
"The authorities indicated to us that discourses are under way to handle the approaching maturities of the Dubai Economic Assistance Fund which might be due this year," Finger told Reuters.
Experts interviewed by Reuters this month forecast steady 4.3 per cent increase in the UAE in 2013-2015.Increase needs to be helped by a number of mega-projects of apartments and villas in Dubai, even though their overall cost, rate of performance and financing remain unclear, and Dubai’s hosting of the Expo 2020 exhibition, the IMF additionally said. “If not executed prudently, these projects might exacerbate the danger of a property bubble," Finger stated, echoing the Fund's warnings from last Nov and June.
"Moreover, these projects may produce additional economic dangers for Dubai’s authorities-related entities (GREs) and the banking system in mild of the still significant debt overhang in the 2009 catastrophe."
Dubai and Abu Dhabi are also still discussing whether to reimburse or roll-over of 20 billion of Dubai government bonds subscribed to by the UAE key bank and banking in Abu Dhabi in '09 under a program that develops this year.
"The authorities indicated to us that discourses are under way to handle the approaching maturities of the Dubai Economic Assistance Fund which might be due this year," Finger told Reuters.