IMF: Real Estate Drives UAE Growth, Overheating Risk Remains

Real estate and moderate oil output growth continue to drive the UAE economy. The real estate sector has been recovering briskly, especially in the Dubai residential market, while the UAE continues to benefit from its “perceived safe haven amid regional instability,” the IMF says in its latest report on the UAE economy. However the strengthening real estate sector, especially in the Dubai residential market, “could attract increased speculative demand, creating the risk of unsustainable price dynamics and an eventual, potentially disruptive correction,” the Fund warns.

After estimated economic growth of 5.2% for 2013, The IMF forecasts growth of 4.7% this year and 4.5% for 2015, supported by a number of mega projects over the past 18 months and the successful bid of staging World Expo 2020 in Dubai. (CONTINUED - 687 WORDS)