IMF not worried about Dubai’s debt

Dubai: The International Monetary Fund is not worried about Dubai’s ability to meet its debt obligations, according to Masood Ahmad, director of the IMF’s Middle East and Central Asia department.

However, the official cautioned Gulf economies of potential boom and bust cycles in the making in the region due to excessive fund flows into the real estate sector and a potential disconnect between demand and supply.

“It is important looking at the stock of real estate that is going to come into the market to be careful to ensure that the measures are in place to moderate the pace of growth to avoid any risk of another boom-bust cycle,” Ahmad said.