As the world enters what appears to be the most formidable downturn since the Great Depression, with tremors being felt in the Gulf, the Dubai Government is reassuring its creditors and introducing measures aimed at supporting the property and financial sectors.

Mohammed Ali Alabbar, a member of the Dubai Executive Council, told an audience at the Dubai International Financial Centre that it was time to address the new economic reality.

'We are rationalising our expenditures and consolidating our activities,' he said, adding that the country’s property industry would 'see more consolidation, especially with third-party developers, who may be facing some lending difficulties'.

Alabbar, who is also chairman of the emirate’s largest developer, Emaar Properties, said Dubai would be able to handle its debt.

The National