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Discuss this article (17 Comments)Property slowdown 'exaggerated' - UAE bank governor
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 30 May 2009
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The UAE's real estate problems have been exaggerated and the country is not diversifying its foreign currency reserves away from the dollar, according to the governor of the central bank.
Speaking about the Emirate’s property sector Sultan Bin Nasser Al Suwaidi said: "There are reports exaggerating the problems of the sector but we are okay."
"We are not diversifying our foreign currency reserves. We are sticking to the dollar,” Al Suwaidi said on the sidelines of a finance conference in the Moroccan city of Marrakech.
Within the UAE federation, Dubai's economy has been hit hard, with many construction projects held up.
The emirate has outstanding debt of around $80bn.
The central bank bought up $10bn of a $20bn bond scheme issued by the Dubai government in February, the second tranche is due later this year.
"We are not worried about deflation. The United Arab Emirates economy is very competitive," Suweidi said.
The UAE minister of economy said in March inflation in 2009 would be in the range of five to eight percent.
Inflation claimed to record highs in Gulf Arab countries last year but falling oil revenues and the global downturn have helped bring it down.
The UAE, which has the second largest Arab economy, hopes to remain the biggest recipient of foreign direct investment in the Gulf region, accounting for 50 percent of capital inflows last year. (Reuters)
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Antoine : Optimism
Posted by ali, dubai, UAE on Thursday 4 June 2009 at 10:22 UAE time
Dear Antoine,
let me give you a shocking news:- The real estate market is never gonna be the same again...and as for ur 2008 rentals...mate...we will be in recession for next 2 to 3 yrs...so i suggest...u wake up and look at all those ppl who are leaving dubai and ask your self a simple question...did i really study, demand and supply in econ 101 calss ?
Posted by ali, dubai, UAE on Thursday 4 June 2009 at 10:22 UAE time
Dear Antoine,
let me give you a shocking news:- The real estate market is never gonna be the same again...and as for ur 2008 rentals...mate...we will be in recession for next 2 to 3 yrs...so i suggest...u wake up and look at all those ppl who are leaving dubai and ask your self a simple question...did i really study, demand and supply in econ 101 calss ?
Face up
Posted by Leo Soz, Dubai, UAE on Tuesday 2 June 2009 at 22:21 UAE time
Countries which have been brave enough to acknowledge and accept the 'problem' have started deploying effective counter measures. 'Acceptance of the reality' is the very first step towards alleviating one's troubles. Self denial will cause long term crisis of confidence and gradual erosion of investor base. Its time for the people in critical position to wake up and smell the coffee.
Posted by Leo Soz, Dubai, UAE on Tuesday 2 June 2009 at 22:21 UAE time
Countries which have been brave enough to acknowledge and accept the 'problem' have started deploying effective counter measures. 'Acceptance of the reality' is the very first step towards alleviating one's troubles. Self denial will cause long term crisis of confidence and gradual erosion of investor base. Its time for the people in critical position to wake up and smell the coffee.
Antoine prices should go back to early 2008 level
Posted by gordon robertson, dubai, UAE on Monday 1 June 2009 at 13:05 UAE time
Antoine high rents and property prices are only good for the owners and no one else.
Affordable rents and properties allows good economic growth as it is part of the infrastructure, once you transfer financial resources out of proportion to its value, you deny those same resources from other productive parts of an ecoomy.
Now with lower prices we can see more people being able to afford to rent and buy, we will see more companies that will move to Dubai and use Dubai as a hub.
In this scenario all will benefit, not just the chosen few as in the past.
I am not negative Dubai, I love Dubai, I invest in Dubai, I love the people in Dubai, it does not mean that I should not challenge excess.
Gordon
Posted by gordon robertson, dubai, UAE on Monday 1 June 2009 at 13:05 UAE time
Antoine high rents and property prices are only good for the owners and no one else.
Affordable rents and properties allows good economic growth as it is part of the infrastructure, once you transfer financial resources out of proportion to its value, you deny those same resources from other productive parts of an ecoomy.
Now with lower prices we can see more people being able to afford to rent and buy, we will see more companies that will move to Dubai and use Dubai as a hub.
In this scenario all will benefit, not just the chosen few as in the past.
I am not negative Dubai, I love Dubai, I invest in Dubai, I love the people in Dubai, it does not mean that I should not challenge excess.
Gordon
Antoine get real
Posted by BNK on Monday 1 June 2009 at 12:01 UAE time
here we go again, another investor, wanting to rob the Dubaians.
No success this time my dear? Stop dreaming.
Posted by BNK on Monday 1 June 2009 at 12:01 UAE time
here we go again, another investor, wanting to rob the Dubaians.
No success this time my dear? Stop dreaming.
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