United Arab Emirates’ bank lobby is proposing limits on lending to the real estate sector to protect banks from being overexposed to sector, Reuters reports.
The UAE, home to the world’s tallest tower, or Burj Khalifa, has faced a sharp real estate slowdown due to oversupply and weaker investment appetite amid lower oil prices, a senior bank executive told Reuters on October 22.
“There is a draft paper for real estate lending with the
UAE Banks Federation (UBF) and the banking sector, which will review and give feedback to have a proper policy in lending cap for the real estate sector,” says
Abdul Aziz al-Ghurair, head of the United Arab Emirates Banks Federation, on the sidelines of a conference.