Dubai will initially channel funds from a multibillion-dollar borrowing programme towards government-owned property developers, especially those struggling to adjust to a global economic downturn that has hurt the market and strained the banking system.

Firms fully or partially owned by the Government, such as Dubai Properties, Emaar Properties and Nakheel, will be able to tap into the first US$10 billion (Dh36.73bn) of what will eventually be a $20bn sovereign bond programme, to meet their financial obligations. The Central Bank agreed to lend the money to Dubai earlier this week.

The National