photo credit: rpoll
Investment property firms in the UAE have been given a boost after government officials said the economic outlook for the region remains positive.
Obaid Humaid Al Tayer, minister of state for financial affairs, said the region is well-equipped to deal with the ongoing world financial crisis.
Some UAE construction projects, particularly in Dubai, have been put on hold during the current slowdown.
Property prices have also started to slide and some lenders have tightened lending criteria.
Al Tayer, quoted by Emirates Business, said:
“We are ready to provide the banks with other funds in addition to the payments they have received if they want them.
“Currently liquidity is available and there is no liquidity crisis in the country.”
The minister was addressing the Federal National Council, a body of 40 members elected from the member emirates.
He also said a 20 per cent Central Bank rule on the amount a bank can loan for property borrowing had not been breached.
Although demand has dropped in Dubai, investment property continues to be a growing market in other parts of the UAE.
Abu Dhabi is experiencing a surge in demand and appears well placed to ride the current storm thanks to a growing population and substantial wealth reserves.
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