Nov. 3 (Bloomberg) -- Dubai’s plans to sell $10 billion of bonds for its government support fund will “depend on its needs at the time,” United Arab Emirates Minister of Economy Sultan Bin Saeed al-Mansouri said.

Dubai, the second-largest of the country’s seven emirates, will probably complete raising a second $10 billion by the end of November, Mohammed Alabbar, a member of Dubai’s Executive Council said on Oct. 9. Companies needing assistance may include Nakheel PJSC, which is building palm tree-shaped islands off the emirate’s coast, Moody’s Investors Service said in June.

Issuing bonds is a good option considering the strength of the overall economy, al-Mansouri told reporters in Dubai today. “Look at this country and what it has provided to the people in terms of its economy, the strength of its economy and our reserves,” he said.

The U.A.E.’s central bank in February bought $10 billion of bonds issued by Dubai to support state businesses struggling to raise cash because of the credit crunch. Abu Dhabi is the largest emirate in the U.A.E., holding 90 percent of its oil reserves, and host to the country’s central bank.

Dubai and its state-related companies borrowed $80 billion to transform the emirate into a financial services and tourist hub. The seizure of credit markets, which began in August 2007, sparked concern that Dubai won’t be able to repay some of its debt.

Economic growth in the United Arab Emirates will probably slow to 1.3 percent this year, dragged down by the global financial crisis, al-Mansouri said on Oct. 21. The economy expanded 7.4 percent last year. Inflation will probably ease to 3 percent in 2009 from about 12 percent the previous year, he said.

The U.A.E. said June 14 that it was working on a law to allow for federal bond sales to boost spending on infrastructure as well as other areas.

To contact the reporter on this story: Camilla Hall in Dubai at chall24@bloomberg.net

Last Updated: November 3, 2009 06:23 EST