Dubai is fully covered to service its debt for the next seven quarters because its asset base far outrips its debts but is centralising the debt-management system, a member of the executive council said.

"The Dubai government borrowings were for government institutions or state-owned entities that have been generating positive cash flows and long-term value as opposed to supporting consumption," Mohammed Alabbar, who is also chairman of Dubai's Emaar Properties, said according to a statement.

Dubai was focusing on a central debt management system for both the government and state-owned entities, Alabbar said, adding that the government was closely watching the real estate market and a high-level committee was exploring several initiatives to boost market confidence.

As the global financial crisis sends ripples through the world's largest oil-exporting region, analysts have begun to ask how Dubai plans to manage an estimated $70 billion in debt. - Reuters