The International Monetary Fund has revised its projections for the United Arab Emirates downgrading its economic growth for the year 2010.

Masood Ahmed, the IMF's Director of the Middle East and Central Asia expressed that Dubai's real estate crisis would impact the economy in 2010 and it would take time for the UAE economy to achieve its past glories.

Masood Ahmed said that Dubai-World's crisis that shocked investors and markets across the globe would continue to haunt UAE's economy in this year and the coming year as well. However, economic prospectus of Abu Dhabi is brighter than Dubai and the emirate is likely to take advantage from slowly improving market conditions.

Ahmed added, "As far as Dubai is concerned, the delay in recovery will result in the year as a whole in a small contraction. This will be compensated by Abu Dhabi's growth."

UAE reported 50 per cent decline in property prices and its non-oil economic growth in UAE is expected to remain flat which was at its peak during real estate boom in the region in 2008.

IMF, in its World Economic Outlook in October, projected 2.4 percent economic growth rate for UAE in 2010.