Dubai: The sovereign debt ratings of some Middle East countries could be downgraded because of the surge in inflation in the region, ratings agency Moody's said yesterday.

The ratings of poorer, non-oil-exporting countries such as Egypt, Jordan and Lebanon are more likely to be affected in the shorter term by high inflation because of their increased social and economic vulnerabilities.
But even the wealthy oil-exporting Gulf states could be affected over the longer term if inflation persists, Moody's said in its report Middle East: resurgent inflation sharpens fiscal and political risks.

Poor ratings result in a higher cost of borrowing for a debt issuer. The region has seen a significant growth in recent years in bond issues for funding large-scale projects.

Gulfnews: Inflation likely to hit ratings.

It seems almost impossible to open a newspaper or magazine in Dubai these days without reading about the latest real estate market report and its findings, which often seem to predict a downward turn or, even worse, market crash here in the near future.

For four or five years now there have been a number of reports questioning the status and longevity of Dubai's real estate boom, with findings suggesting that it has just about peaked, that oversupply is around the corner, that prices are too high and that the number of properties under construction is unnecessarily high and therefore saturation is pending.

Gulfnews: Assessing the health of Dubai market.