As property prices in Dubai continue to plummet and defaults in retail loans increase, many banks are retrenching the size of their loan books. Meanwhile, mortgages remain pricey due to the relatively high interest rates in the United Arab Emirates. According to UAE Central Bank figures, the emirates’ 52 banks (24 domestic institutions and 28 foreign) provided approximately $23.14 billion in mortgage loans during 2007 and most of 2008. DUBAIFocus, an information hub by REIDIN.com in partnership with Dubai’s Real Estate Regulatory Authority (RERA) and the Dubai Land Department, said that compared to the last year, mortgage lending in Dubai fell 77 percent in the second quarter of 2009 from $9.58 billion to $2.17 billion. DUBAIFocus reported that the value of issued mortgages in Dubai exceeded $2.17 billion during the second quarter. In the first three months of this year, mortgages reached $1.9 billion — an increase of 14 percent
