Oct. 6 (Bloomberg) -- Deyaar Development PJSC, a Dubai- based real-estate company, may take over or merge with other regional developers as the global credit crisis turns up ``good value deals,'' the company's chief executive officer said.

``There are a lot of distressed assets in the market,'' Markus Giebel said in an interview in Dubai today. We could buy ``land or another company that can assist in our global expansion. We are looking more at international companies but a good deal is a good deal.''

Dubai's real-estate industry may consolidate after five years of steep gains as the global credit crunch hits the Persian Gulf. Home prices in Dubai, the second-biggest of the seven sheikhdoms that make up the United Arab Emirates, are likely to remain flat until 2010, Colliers CRE Plc said yesterday.

State-controlled Deyaar may merge with Dubai-based developer Union Properties, Zawya Dow Jones reported today, citing people familiar with the plans. Giebel declined to comment on specific merger plans.

Amlak Finance PJSC and Tamweel PJSC, the largest mortgage lenders in the U.A.E., said Oct. 4 they started ``exploratory discussions'' about a possible merger.

Delayed Bond Sale

Deyaar plans to delay an Islamic bond sale as the global credit crisis deepens, which may slow the company's plans to expand in Saudi Arabia, India and the U.S.

Deyaar, whose former Chief Executive Officer Zack Shahin Will stand trial this month for embezzlement after being detained in March, is finding it ``much more'' difficult to raise money at present and will wait until markets improve, Giebel said.

The U.A.E. central bank last month set up a 50 billion- dirham ($14 billion) fund for banks to ease liquidity constraints caused by the seizure of global credit markets.

Deyaar fell 9.9 percent to 1.37 dirhams, bringing the decline for the year to 53 percent. Union Properties has slumped 47 percent in 2008. The Dubai Financial Market Real Estate Index tumbled 11 percent today.

To contact the reporter on this story: Matthew Brown in Dubai at mbrown42@bloomberg.netAyesha Daya in Dubai adaya1@bloomberg.net

Last Updated: October 6, 2008 09:15 EDT