After the bubble, the dirty linen

Reading reports of criminal cases under these restrictions can be tricky, particularly if you're used to the more colourful prose of UK crime writing.

Take this report from The National, the best written of the local UAE papers: "Among those charged in the DIB case are a Turkish businessman identified as AN, 36, and Britons CR, 48, and RL, 54."

Still, the case is significant for what we are told, rather than what's left out: traditionally, such white-collar transgressions were dealt with behind closed doors.

Essentially, the indictment says the three Brits were part of a scheme to set up fake property companies, which then applied for massive loans from Dubai Islamic Bank, a prominent state-backed institution.

Two have been charged with defrauding the bank of $501 million, while the third Brit is charged with criminal complicity. The court has not yet set a date for the trial. In total seven people have been charged, at least one of whom is on the run.

The investigation is part of a more extensive crackdown on fraud in Dubai, launched by the authorities last spring as the property bubble reached its peak.

Investigators have arrested executives from a number of large state-backed developers, including Deyaar, Sama Dubai and Nakheel.

Some commentators moan that the investigation is moving too slowly, and while they may have a point, the central fact is that Dubai is finally washing its dirty linen in public.

That's progress, even if the name tags have been removed.

Relief may be in sight for Dubai's battered property and stock markets. Abraaj Capital, the Middle East's biggest private-equity firm, says it's eyeing cheap assets following steep price corrections.

The main Dubai stock index is down 7% this year, following a 72% fall in 2008. Property is down by between a quarter and a half from its summer peak, depending which broker you ask.

UAE banks face a funding gap of $30 billion as loans outstrip deposits, according to the central bank chief.

Until last year, foreign banks financed the shortfall through bonds and syndicated loans. With those avenues all but blocked, the central bank says the UAE finance ministry may plug the gap.