The UAE Central Bank has drawn up tighter regulations to supervise local banks’ exposure to the real estate sector.
The new standards will ensure the adoption of best practices in real estate financing and risk management.
They cover all types of on-balance-sheet loans and investments, and all off-balance-sheet exposures to the real estate sector.
The latest rules will take effect from December 30, starting with a one-year observation period, during which banks will be required to enhance their practices to meet the new criteria.
The comprehensive standards require banks to review and improve their internal policies to enhance sound underwriting, valuation and general risk management for their real estate exposures.
Asad Ahmed, Managing Director at the consulting firm Alvarez & Marsal, spoke to Dubai Eye 103.8's The Business Breakfast about the changes.
UAE ranked world's most sought-after for real estate investment
H.H. Sheikh Hamdan reaffirms Dubai’s focus on enhancing economic resilience
UAE's AD Ports acquires Brazilian bulk port operator for over AED 3 billion
General Mills to sell Haagen-Dazs ice-cream shops in mainland China
Dubai Taxi Company targets Ajman expansion through new partnership
