International real estate developer Hines said that it would set up a special $1 billion property fund for the United Arab Emirates.

Jurgen Herre, Hines' head of Middle East and North Africa region, said that the firm would meet the financial obligations by raising funds from investors and regional funds.

Herre added, "For the last two years we did not invest because we felt there would be a price correction. But in six to nine months, we will start investing equity into projects with our institutional partners. There are major opportunities now."

UAE has been experiencing a steep decline in property rates since the outbreak of global financial crisis leading to property slump. Many regions, especially Dubai, witnessed investors either canceling or delaying a large number of projects, in the midst of reservations on the part of lenders to provide home loans, and increased number of default cases in the once-booming Gulf Arab trade hub.

The fund by privately owned Hines, with assets valued at around $25.8 billion, would be available in six to nine months, and is expected to give the much-needed push to stalled development projects in the region.