Sir Richard Branson's Virgin Group is reportedly in talks with Dubai International Capital (DIC), and is looking for $12 billion (£6.06 billion) to help expand its businesses in the Middle East and Asia.

The oil-rich Gulf fund has previously been linked with Virgin, as one of Branson's backers in his failed bid for Northern Rock.

Virgin executives are said to have met DIC officials in Dubai, although the company refused to comment.

Funding possibilities include a sale of a stake in Virgin's health-club business or a mobile-phone joint venture in the Middle East.

DIC, like other so-called sovereign wealth funds, have been on the prowl globally for acquisitions and joint ventures, with Britain's hospitable investment climate of particular attraction.

The Dubai fund has been involved in a high-profile bid to take over or buy into Liverpool Football Club. Two years ago it paid £675 million for the Travelodge hotel group and has also taken big equity stakes in Daimler, Sony, Airbus-maker Eads and HSBC.

Virgin is said to be eyeing options for funding an expansion of its health club business Virgin Active, hiring Goldman Sachs to advise.

Options include a public offering (IPO) on the London Stock Exchange, however market turmoil may make the DIC route more attractive.

Virgin Active has two gyms in Dubai and plansmore - it is also looking at global expansion.

Branson owns 75% of Virgin Active, with the remaining shares held by management and the private equity firms Bridgepoint Capital and Permira.

Virgin is also reckoned to be looking for licences for its pay-as-you-go mobile phone model in the Gulf.