The troubled state-owned conglomerate Dubai World is reported to be backing bidding for acquiring farms in New Zealand causing alarming bells in the farm sector. The reports published in Daily Times newspaper claim that officials from Dubai World approached a group of indigenous Maoris for buying dairy, sheep, beef and deer farms in Southland State.

The Federated Farmers Organization, on the other hand, warned its members against any hurry, urging them to ensure scheduled deposits from the troubled financial firm before making final decision to sell farms.

David Rose, Federated Farmers rural security spokesman said, "I am extremely nervous of reports that no deposits are being taken. Our second concern relates to the financial backer being reported as Dubai World, the Emirates-owned and -controlled corporate lender."

Voices of dissent have also emerged in the Green Party, which has called for strict FDI regulation to avoid land grabbing by any foreign party.

Russel Norman, co-leader of the Green Party, said, "New Zealand needs to tighten its rules around overseas investment as China and the Gulf states go on a worldwide shopping spree for prime land.

A spokesman for the purchasers, however, denied the financial role of Dubai in the deal, but added that milk from farms can be exported to Dubai.