UAE mortgage ruling driven by new property bubble fear

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In what is seen as an attempt to prevent another property bubble forming, the UAE central bank has put large caps on the amount of money people can borrow for a mortgage.

Expats must now have 50% of the asking price as a deposit, Emiratis must have 30%.

But while some banks have enforced the rule, others are concerned it will make economic recovery in the region more difficult - and it does not apply to cash buyers, who are largely blamed for creating the previous bubble.

Jonathan Frewin reports from Dubai.

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