Real estate development projects in the UAE are facing a long wait in gaining finance, with Dubai in particular unlikely to receive much in the near future, as banks remain very selective in their financing, according to executives at the Reuters Middle East Investment Summit.

Sameer al Ansari, chief executive at investment bank Shuaa Capital, said: "Banks are still reluctant to lend on real estate. We see a slow return to very selective mortgage lending and where we see it, it is lending where there is very limited risk (but) major real estate lending by the banks ... I dont see that coming."

House prices in Dubai have fallen around 60% from their peak in 2008, which has been largely due to oversupply, which Colliers estimates to be around 20%.

Abu Dhabi , the UAE capital, has fared better than Dubai during the downturn, with 2011 seen as another year of consolidation, as developers focus on the completion and handover of projects.

Ziad Makhzoumi, chief financial officer of Arabtec, said: "In Abu Dhabi there were lots of projects that were suspended and there were many projects that were re-tendered, but very few have been awarded."