UAE banks at risk due to falling real estate prices

SANAA, Sept. 26 (YPA) – UAE-based banks are increasingly at risk from their asset quality deteriorating as the country’s domestic real estate weakens,”Fitch Ratings said on Tuesday.

The agency stated that prices have fallen by more than 20% since their peak in 2014, is likely to put more pressure on the asset quality of the banking sector.

Rental prices are unlikely to recover in the near term, with oversupply likely to continue until after Expo 2020 in Dubai.

Bank debt linked to the UAE’s property sector is increasingly being restructured, which it said was “a sign of weakening asset quality.”

E.M