Dubai will this week outline borrowing terms to staterelated companies in need of assistance as it seeks to inject much of its $10bn borrowing into the economy to help lift the emirate from its economic malaise.

The government is about to appoint a financial adviser to devise loan terms for those companies wanting credit lines from the $10bn lent in February by the United Arab Emirates central bank to the city-state.

The first half of a $20bn government bond scheme aims to help the emirate’s corporate giants pay off about $75bn (€56.4bn, £52.4bn) of debt and meet commitments, especially in the troubled real estate sector, where some state developers have failed to pay invoices for large amounts for the past nine months.

The slowdown has affected finance, trade and tourism in the region’s commercial hub, now also threatened by an expatriate exodus. EFGHermes forecasts 17% of the population could leave by the end of the year.

Financial Times