Egyptian bank 'may buy stake in Dubai developer'

One of Egypt's state-owned banks is examining the possibility of purchasing a share of UAE property developer Damac, it has emerged.

According to Reuters, the Housing and Development Bank is looking into investing in a stake of the real estate firm, which is Dubai's largest private construction company.

Damac is currently building property developments in Egypt worth in excess of 20 billion USD (13.5 billion GBP), including a 16.3 billion USD project on the country's Red Sea coast.

Such a move could affect property investors looking to make a purchase in either of the two countries, however Damac has refused to shed any light on the speculation, with vice president of corporate communications Niall McLoughlin telling Emirates Business: "It is a market rumour and we will not comment on it."

In related news, the Real Estate Regulatory Authority in Dubai recently moved to stop developers from increasing service charges after investors in the emirate expressed their anger at rising costs.