Dubai May Raise $10 Billion for Fund in November (Update1)

Dubai, which set up a $20 billon fund to help state-related companies through the credit crisis, will probably raise a second $10 billion for the program in November, Emaar Properties PJSC chairman said.

“I am not sure of the date, October, November? November is a more reasonable date,” Mohammed Alabbar, who also headed the government committee evaluating the impact of the global credit crisis on Dubai, told CNN in an interview from Dubai today. Financing “will be majority government and minority private sector in my opinion,” he said.

The fund borrowed the first $10 billion by selling bonds to the United Arab Emirate’s central bank in February to help state-related companies facing problems raising cash amid the global credit crunch. Dubai, the second-biggest of seven sheikhdoms that make up the U.A.E., and its related companies earlier borrowed more than $80 billion to transform the economy into a tourist and financial services hub.