'Oil descent to take toll on UAE's economy'

20.12.2014
According to financial expert Peter Cooper, this does not look like a rerun of events in 2009-10 with Abu Dhabi putting a brake on the housing boom late last year. With oil prices cut in half, the UAE is bound to go into recession next year, according to Peter Cooper, editor, ArabianMoney.net.
In a report in The National, he said: "This does not [however] look like a rerun of events in 2009-10. Abu Dhabi prevented that happening by putting a brake on the housing boom late last year. True, Dubai is still busy putting a canal under Sheikh Zayed Road. But this is not like 2009, when hundreds of billions’ worth of projects went ahead simultaneously then stopped suddenly, leaving a pile of debts."
He added that Dubai will be able to carry on building even if some projects will go slow and some actually stop for a period.
"The projects started recently will be built out and dumped on to a market in recession. Increased supply in a depressed market is not good for prices. Still, the UAE will remain in demand as a safe haven and the rental market may remain surprisingly solid, as it was in 1999-2000," added Cooper.

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