IslamicFinance.de

In an effort to prevent any repeat of Dubai's corporate debt crisis, the UAE central bank plans to restrict the amount of exposure banks can have to the debt of government-related entities. The rules will be issued by the end of this year and banks are expected to be given about five years to finish complying with them. A period of consultations between the central bank and commercial banks ensued. Last week, the UAE central bank issued restrictions on mortgage loans in order to limit speculation in the real estate market; the caps were not as stringent as initially planned because of lobbying by the banking industry.