Dubai’s planned Islamic bond issue attracted bids worth $5bn for the dollar-denominated offer and 5.7 billion dirhams ($1.55bn) for the dirham-floating note, bankers involved in the deal said today.

Dubai and its state-controlled companies are raising funds after they amassed $80 billion of debt during a four-year real- estate boom, which produced the world’s tallest building and largest man-made islands. The global credit crunch had raised concern that the second-biggest sheikhdom in the United Arab Emirates may be unable to meet its debt obligations.