WASHINGTON, July 16: The United Arab Emirates is in the midst of a real estate and asset price boom, fueled by strong economic conditions in the ME oil producer, the IMF said on Friday.

Monetary policy remains appropriately geared to containing inflation, the IMF said in a regular review of the United Arab Emirates, which neighbors Saudi Arabia and Oman.

The IMF said the United Arab Emirates recorded very strong economic growth in 2004 because of high oil prices, increased oil production, strong investor confidence and more foreign investment — particularly in its financial hub, Dubai.

The medium-term outlook remains favorable, the fund said. The United Arab Emirates is in a good position to consolidate the recent gains from the high oil prices.—Reuters