Stronger Dollar to Possibly Stall Dubai Recovery -Analysts

Wednesday, 16th November 2016

The recent strength of the US dollar could possibly hamper the recovery of Dubai’s struggling real estate market, according to analysts speaking to The National.

The dollar has strengthened to multi-year highs following the election of Donald Trump, gaining value against both the Euro and the Chinese Yuan.

A strong dollar has already in 2014 been cited as a reason for the decline in Dubai’s property market back then since the Dirham is pegged to the US dollar.

While some of the analysts cited see a more nuanced effect in the long run, the majority of them expect a negative short-term impact on the projected recovery of the Dubai market in 2017.

The strength of the dollar basically means that foreign investments into the UAE’s market become more expensive, thus causing a slowdown of the market.

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