A new rent cap strategy for 2009 has been formulated for Dubai, according to a news report.

The new strategy is awaiting approval of Sheikh Mohammed bin Rashid Al Maktoum, UAE vice-president and prime minister and Dubai ruler, Emirates Business reported.

"The rent cap will be announced soon that is all I can say," Nasser bin Hassan Al Shaikh, director-general of the Dubai Department of Finance, was quoted as saying in the report.

Al Shaikh, however, did not reveal whether the cap would be reduced or increased.

For 2008, Dubai had lowered the rent cap to five per cent from seven per cent in 2007.

The Real Estate Regulatory Agency (Rera) has completed groundwork on the much-awaited rental index, which is also awaiting approval from the Ruler's Court, the report added.