The growing rents prevailing in Abu Dhabi is responsible for more than 50% of the rate of inflation in the UAE, according to SBC. It previously estimated Dubai's inflation rate to hit 9.4% this year, and will drop to 3.1% next year due to an eminent correction for the property market in the emirate.
SCB believes inflation in Dubai in 2005 was as high as 13%. Additionally, SCB issued a report forecasting that the inflation rate in the country will be 13.8% this year as a result of rising housing costs, high oil prices, and imported inflation.
