IFF says UAE economic fundamentals saw ‘significant improvement’

May 6, 2014 10:26 am

The Institute of International Finance (IIF) has said a surge in UAE property values probably won’t lead to an asset-price bubble because credit growth remains relatively modest, Bloomberg has reported. Loan growth in the second-biggest Arab economy may slow to 11% in 2014 from 13% last year, the IIF said in a report. “There are major differences between the current boom and the previous, which was more driven by speculative excesses,” Garbis Iradian, deputy director for Africa and the Middle East at the Washington-based IIF, said. “The strong rebound in housing prices has been driven by a significant improvement in the underlying economic fundamentals.”