UAE reduces budget to USD13.2b for 2016

(MENAFN) UAE's real estate is facing a major question, which is how it will adjust to the 'new normal' of lower oil prices and reduced government spending that now looks likely to be here for quite some time.

Meanwhile, the UAE plans to uphold a balanced budget, with the cabinet recently setting a spending target of USD13.2 billion for 2016, down by 1 percent from 2015, reflecting a conservative attitude from that embraced in prior years.

On a wider scale, the Middle East facing two key economic challenges; the increased fiscal pressures from a mixture of lower oil prices and increased defense spending, and the constant need to create more employment.

However, both the region and the UAE remain to experience economic growth in line with the global average, although the pace of global growth has slumped over the past six months, due to worries in China and other emerging markets.