Oct. 6 (Bloomberg) -- Deyaar Development PJSC 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., the company's chief executive officer said.

The Dubai-based real-estate company is finding it ``much more'' difficult to raise money at present and will wait until markets improve, Markus Giebel said in an interview in Dubai today. Deyaar, whose former Chief Executive Officer Zack Shahin will stand trial this month for embezzlement after being detained in March, may buy international or domestic developers, Giebel said.

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. 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.

Deyaar may merge with Dubai-based developer Union Properties, Zawya Dow Jones reported today, citing people familiar with the plans.

Deyaar fell 9.9 percent to 1.37 dirhams, bringing the decline for the year to 53 percent. Amlak has tumbled 45 percent and Tamweel 54 percent in 2008.

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 07:46 EDT