UAE/Dubai: Property woes pose risks for banks and government

There are fresh concerns about the health of the Dubai real estate market, following a report from Fitch Ratings, published in September, which said banks might have to undertake further restructuring of property loans and warned that a default by a large borrower “could cause fast deterioration of asset quality at one or more banks”.Dubai property prices have dropped by about 25% since 2014, while loans to real estate and construction companies account for some 20% of bank lending in the emirate.