National Bank of Abu Dhabi too dependent on real estate sector

In an economy overheated NBAD focuses on the real estate sector. The construction and housing sector should be one of the first to be hit by a worldwide slowdown. Most of the hotel guests are foreigners. A third of Dubai hotel guests in 2007 were from Europe alone. UAE is highly dependent on the world economy. United Kingdom, Japan, India and the United States have been the top investors in the emirate in the last few years. Especially NBAD could suffer by a downturn in its main market. We see signs of a speculative bubble in the real estate market in the UAE.
For 2008 we expect an attractive price earnings ratio of 9.55. This is a better indicator