The proposal was made following a meeting between Sultan bin Saeed al-Mansouri, the Ministry of Economy and the heads of various other UAE economic departments.

The committee would include representatives of the Ministry of Economy, economic departments, municipality authorities and other public and private sector bodies.

Following the meeting, the Ministry of Economy said the government must intervene to bolster the UAE economy.

It suggested further interest rate cuts, schemes to encourage deposit growth in UAE banks and the implementation of varied interest rates for different economic sectors.

Dubai has already formed an Advisory Council to assess the impact of the financial crisis on its economy.