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Fingers crossed

Fingers crossed

Indicators seem to suggest that the UAE will be having a happy new year in 2010 after bidding goodbye to an economically rough 2009.

December 29, 2009 3:22 by

The UAE saw the biggest loss in investor confidence, declining from 20.7 percent in November to -63.3 percent in part one of December, and moving onto -19.4 percent in part two of December.

“However, post the Nakheel sukuk payment the index moved back into positive territory, reaching 116.9 points,” Schutzmann said.

The report from DCCI also quoted figures from a Nielsen Global Consumer Survey, which found that 45 percent of UAE consumers are confident that the country will emerge from the economic slowdown in the next year.

One of the main sectors that was adversely affected by the crisis, real estate, is also finally starting to stabilize, the report said.

“The fall in Dubai’s property prices and rental costs since the last quarter of 2008 has come to the relief of residents and businesses alike. Some commentators have suggested that a combination of the departure of expatriate workers (leading to lower consumer demand) as well as the entrance of new housing stock into the market has pushed rental prices down by around 25-30 percent since the beginning of 2009,” the report said, adding that lower prices have made the city more competitive.

Property prices have also started moving upwards since the third quarter of 2009 because of rising liquidity and increasing consumer demand, signaling a revival in the market, the report said.

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