IMF warns Dubai of risk of real estate bubbleJanuary 31, 2014 @ 9:02 am
DUBAI, United Arab Emirates (AP) - The International Monetary Fund is warning that Dubai's megaprojects could increase the risk of a real estate bubble.
The city, part of the oil-rich United Arab Emirates, has long had a penchant for monumental buildings and development projects, notably a large area around a new airport with hotels, housing and a new conference center to host the world Expo 2020.
But the IMF cautioned that if these projects are not "implemented prudently" they could exacerbate the danger of a bubble and create additional risks for government-owned companies and the banking system, still recovering from a 2009 financial crisis.
The Thursday statement released after an IMF team visit said that economic growth in the UAE is expected to remain strong at 4.5 percent this year.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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