Government says the first $10m is already feeding through to contractors

The second $10bn bail out for Dubai is likely to be delivered this year, the emirate's finance department has said.

News of the arrival of the second half of the $20bn lifeline from the UAE central bank will come as a relief to the UK firms waiting for payments from Dubai developers. Building reported in March that the average UK contractor was owed an estimated £50m for work done in Dubai.

The Dubai finance department said that first tranche of the bail out was already having an effect, with developers starting to pay off contractor bills.

The first half of the $20bn bail out, which the UAE government is loaning Dubai in the form of a bond, was announced in March. The money has been passed on to state-linked companies, primarily developers, in order to help them clear their debts.

Topics