Mubasher TV
Contact Us Advertising   العربية

Dubai’s credit-risk premium drops 42.5% in 4 yrs - C.bank

Dubai’s credit-risk premium drops 42.5% in 4 yrs - C.bank
Risk premium contracted by 42.5% to 118.2 bp as of end-2018

UAE – Mubasher: Credit-risk premium in the emirate of Dubai has fallen during the past four years, the Central Bank of the UAE (CBUAE) announced.

This decline comes as a result of investor confidence in the GCC emirate, Al Bayan newspaper reported.

Risk premium contracted by 42.5% to 118.2 basis points (bp) as of end-2018 from 205.8 bp at the end of 2015, according to the CBUAE’s annual report.

The report added that the risk premium fell to 193.8 bp in 2016 and to 123.7 bp in 2017.

The number of tourists who visited Dubai in 2018 reached 15.92 million, versus 15.79 visitors in 2017, the report revealed.

Moreover, the report showed that the prices of properties in Dubai fell by 6.4% in 2018, while the leasing return shrank at an annual rate of 6.86%.

The average price of square metre in the emirate’s real estate market stood at AED 12,918 last year, compared to AED 13,803 in 2017, the report added.

According to Dubai Land Department (DLD), the real state sector in the emirate has seen deals valued at nearly AED 10 million and investments worth AED 45.6 billion in 2018.