Dubai markets jumped higher in early trade on Monday on the news that the United Arab Emirates will lend the emirate at least $10bn in a bail-out aiming to restore confidence and rescue the struggling economy.

The Dubai Financial Market index rose 5 per cent as traders welcomed the sign that the federal institutions will help the government as it seeks to refinance its $74bn debt mountain. This includes $13bn of repayments due during the remainder of 2009, according to estimates by EFG-Hermes, a local investment bank.