UAE – Mubasher: Moody's Investors Service expected that the UAE’s real gross domestic product (GDP) growth would reach between 6% and 7% in 2022, which will back the credit quality of local real estate companies nationwide.
Real estate developers in the UAE are forecast to be supported by a powerful economic recovery, driven by a hike in oil production, higher energy prices, and a rebounding services sector, according to a press release.
Lahlou Meksaoui, VP-Senior Analyst at Moody's, noted: "We forecast UAE real GDP growth of 6%-7% in 2022 and the credit quality of UAE real estate companies we rate to remain broadly stable in the next 12-18 months."
Meksaoui added: "However, more dangerous waves of COVID-19, higher inflation, rising interest rates, and fears of a recession in the US and Europe pose risks to the economic recovery."
Despite the signalled risks, the country's management of the COVID-19 pandemic and introduction of new residency visas resulted in a recovery in the labour market, which is a fundamental housing demand driver.
The UAE’s economic growth attracts foreign investment and boosts economic confidence, Moody’s highlighted, elaborating that in February 2022, Apollo Global Management inked a commitment with Aldar Properties to endorse the latter’s transformational growth plans with $1.40 billion investments.
