Outlook downgraded for Dubai developer

One of Dubai's largest property developers has seen its outlook downgraded by one financial market analysis firm.

Standard & Poor's has revised its view of Emaar Properties, moving it from stable to negative in the wake of the emirate's declining real estate market.

The firm warned that a prolonged downturn in Dubai's real estate market could result in Emaar's financial position - which is currently seen as being healthy - falling.

Credit analyst at Standard & Poor's Alf Stengvist explained:"The outlook revision reflects a rapid weakening of the real estate markets in Dubai and our uncertainties about the depth of the downturn and the pace of eventual recovery,"

It was noted that the revised rating has taken into account the financial support Emaar receives from the government of Dubai, as well as the group's strong cash flow and asset base, along with low debt leverage.

Another Dubai-based builder - Cayan Investment and Development - recently announced the completion of its Dorrabay project at Dubai Marina.

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