Outlook for UAE promising as per UBS chief

UBS-Kaspar-VilligerUBS chairman Kaspar Villiger has told that in spite of the impact of the Dubai World debt announcement, the outlook for the UAE economy is "promising".

The Swiss bank's chief even said that the UAE and the Gulf region have "fresh opportunities" for economic recovery.

It was during a meeting with Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, deputy ruler of Dubai and president of the Dubai International Financial Centre (DIFC), when he gave his comments.

Well known news agency WAM added that during the meeting, Sheikh Maktoum and Villiger also aimed at finding solutions to global economic situation and emphasized the efforts of governments around the world to stimulate economic growth.

In the month of January, a research note by UBS told that the prices of house could decrease a further 30% from current levels and up to 150,000 homes could be kept empty by the end of 2011.

Analyst Saud Masud said in the note, "We reiterate our view that by end of 2011 Dubai property oversupply on residential and commercial properties may reach roughly 40-50 percent and house prices may decline another 30 percent from current levels."