UAE

Although oil prices remain high, and some developments in the real estate market may inspire confidence, Dubai's debt problems have not been resolved, and resumption of construction activity will prolong an over-supply situation in the housing market. For Abu Dhabi, the picture is somewhat brighter, with the infrastructure, oil and industrial sectors all having recovered in 2009 and 2010. However, domestic demand remains a weakness across the country, as is evident from still falling rents. A renewed slowdown in the US and Chinese economies, hurting external demand, will therefore be very harmful for growth and financial

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