Sheikh Mohammed tweets that he wants committee to ensure that ‘semi-government real estate companies in Dubai won’t compete with private sector investors’. Dubai’s ruler announced Monday the creation of a panel to address a glut in the property market, a key part of the economy but in decline for the past five years.
The committee charged with rebalancing the industry will be headed by Sheikh Mohammed bin Rashid Al-Maktoum’s son and deputy, Maktoum bin Mohammed, and include representatives of top property developers in Dubai.
“Today, we formed in Dubai a higher committee for real estate planning… with the aim to achieve a balance between supply and demand,” Sheikh Mohammed, who is also prime minister of the United Arab Emirates, said on Twitter. Dubai’s property market has been in a downturn since mid-2014, with sale prices and rents shedding around a third of their value.
Economic outlooks indicate that the sector, which contributes some seven percent to Dubai’s gross domestic product, will slump further due to the extent of oversupply and an economic slowdown caused by low oil prices.