Wednesday saw the Dubai government unveiling a bailout fund, with the aim of dealing and distributing the proceeds of a $20 billion sovereign bond programme, meant to aid cash-strapped companies in the emirate.

According to Abdulrahman Al Saleh, Director General of Dubai's Department of Finance, "The Dubai Financial Support Fund will provide loans to government and non- government entities engaged in projects of strategic and developmental importance to Dubai."

The finance head informed via a statement, "Each application for support will be assessed against predetermined criteria to ensure the funds are allocated efficiently and in accordance with Dubai's long-term growth strategy."

According to analysts, the move by government to bail out companies coping with serious liquidity problems and heavy debts, was expected and would prove critical to the survival of these businesses, most of them in the property sector.

A sum of $80 billion was the official estimate of the total debt of Dubai's government-owned and government-related entities in December 2008.

"As an independent legal agency, the Fund aims to offer financial support and cash liquidity to qualified government and non-government bodies," said Al Saleh on Wednesday.

However, it was not immediately clear whether the Fund's establishment would expedite - or complicate - the disbursal of emergency funding to companies, most of which are in need of help.