Dubai establishes committee to oversee slumping real state market
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DUBAI, Sept 2 (Reuters) - Dubai has set up a committee to balance supply and demand in the real estate sector and guard against competition between semi-government companies and private firms, the emirate's ruler said on Monday.
Property prices have steadily contracted by at least a quarter over the past five years due to continued gap between supply and demand.
Sheikh Mohammed bin Rashid al-Maktoum wrote on Twitter the committee would include major developers and be headed by his deputy and son, Sheikh Maktoum bin Mohammed.
The committee would also develop a strategy for major projects over the next ten years, Sheikh Mohammed wrote.
It was not immediately clear how semi-government and private firms could be stopped from competing. Dubai has traditionally encouraged open, competitive business.
Dubai's government communication office did not immediately respond to an emailed request for comment.
Facing a squeeze on corporate earnings, developers have cut prices and offered generous payment plans in a crowded market.
The real estate market has historically been a significant sector for foreign investment in Dubai. The sector accounted for 7.2% of the emirates' gross domestic product in 2018.
(Reporting by Sylvia Westall, additional writing by Alexander Cornwell; Editing by Toby Chopra)
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