Fitch: Dubai real estate strong

Fitch Ratings said in a new report that the Dubai real estate market should remain robust this year, underpinned by positive fundamentals, despite the prospect of oversupply.

These fundamentals, together with increasing corporate sophistication, should support companies' credit profiles over the medium term.

Fitch said it expects ratings to remain stable for Dubai Holding Commercial Operations Group LLC (rated AA-) and Gulf General Investment Co. PSC (rated BBB).

Fitch said the outlook for construction in general in the region is more positive than in western Europe. Supportive factors - such as strong GDP growth, rising income, healthy liquidity, rapid population expansion and increasing mortgage availability - continue to underpin robust growth in Abu Dhabi, Dubai and Doha.

Challenges include the prospect of oversupply and the risk of being unable to stimulate demand in view of massive development projects in the pipeline, the agency said.

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