Residential property costs in Dubai, one of many UAE’s emirates, had been falling since 2014 on excessive provide and weaker demand, forcing building corporations to chop jobs and halt enlargement plans, and resulting in rises in banks’ unhealthy loans.
However, the sector bounced again this 12 months, because of a profitable vaccination roll-out and an early easing of COVID-19 restrictions, which boosted Dubai’s financial system as commerce and journey sectors opened up.
“Banks with increased risk-weighted actual property publicity of their portfolios might be topic to a extra intensive supervisory evaluate of their underwriting and threat administration practices on this phase,” the central financial institution mentioned.
The regulator will give banks one 12 months to reinforce their practices to satisfy the brand new necessities, ranging from Dec. 30.
(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)