Inflation fears do not worry Dubai market

March 25, 2014 7:19 pm

The Dubai Financial Market General Index (DFMGI) regained 0.63 per cent to reach 4,345.49 points on Tuesday, March 25. Emaar added a tiny 0.22 per cent to close at AED9.77. National General Insurance plummeted by ten per cent to AED5.41. Meanwhile, economists and bankers warn of rising inflation in the UAE. According to Dubai-based economist Dr Nasser Saidi, inflation, in February, rose by 2.6 per cent in Dubai, one of the seven sheikhdoms comprising the UAE. “This is the highest inflation rate since 2009,” says Saidi, a former minister of economy of Lebanon and former chief economist of the banking free zone, Dubai International Financial Centre. Tirad Al-Mahmoud, chief executive of Abu Dhabi Islamic Bank, was reported by UAE daily, The National, as saying that he was worried about price developments, especially in the real estate sector. “I think the growth in rental rates, at 60 per cent and 70 per cent in some pockets, although isolated, is not a healthy trend.”

Gérard Al-Fil