International Monitory Fund (IMF) has voiced the concerns of many stakeholders in Dubai’s realty sector by expressing its reservations over the construction boom witnessed again in the state. IMF strongly believes that the real estate governing bodies in the UAE need to minimize the risks of having another boom and bust cycle in the local realty market.
During a trip to Dubai for the launch of IMF’s regional outlook update, Masood Ahmed, the IMF’s director of Middle East and Central Asia Department, spoke to the concerned authorities and expressed his concerns over any financial crises that may hit Dubai once again due to careless property management.
With dozens of stalled projects resumed and some really grand projects being under construction right now, the developers and investors in Dubai seem too excited and lost in the glory of bagging more money this time that they appear oblivious of how things ended up in 2008. By addressing this issue, the IMF’s regional head has given a clear message that the world does not afford another financial crisis in the region.
The Dubai Government has been advised by the regional director IMF to ensure careful management of the real estate projects in Dubai just to make sure that the government related firms in the state stay safe from any financial troubles.
It is also confirmed by many sectors and independent estate agents as well as news sources that some of the factors that triggered the property crash of 2008 still exist in the Dubai’s property market. However a lot of efforts by the Government, private and public sector have been put directly in keeping the market from collapsing.
IMF believes that for the continuation of region’s economic prosperity in general and that of the UAE in particular the Government of Dubai must be prepared to proactively deal with every factor that tries to hinder this process.