UAE Pays Off Debts Of Emirati Investors

LAHORE: The UAE Government’s decision to pay off their debts has not only helped the Emirati investors heave a sigh of relief, but the move is also likely to help the local banks reduce their non-performing loans to comfortable levels. According to a recent Gulf News article, the Emirati investors were undoubtedly struck by the plunge of Dubai’s property market “when both novices and experienced investors were stung by flipping one apartment too many.”

The Gulf News viewed: “While analysts say there are no current figures to quantify how many Emiratis lost money during that period, legal action against investors as well as well publicised government debt payoffs suggest that it was significant. But, Saeed Hirsh, a London-based economist at Capital Economics, explained that middle class Emirati investors were perhaps in a more difficult position when the heyday ended — in that they could not simply get on a plane and never come back.” The UAE newspaper further wrote: “A recent ruling by the government to pay off the debts of hundreds of such Emiratis has, therefore, been largely welcomed by analysts, who argue that the move not only allows these individuals to get out of debt but also reduces the burden of unpaid loans on local banks.” It quoted Nick MacLean, managing director for the ME at CB Richard Ellis as saying: “Emiratis have access to land across the Emirates where foreign investors do not. In that respect, Emirati investors have a clear advantage over their foreign counterparts.”

[The News]

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