Dubai has launched a wide- ranging restructuring of its government-controlled companies. Those owned by the emirate's ruler will also be reorganised.

The restructuring is aimed at consolidating the sprawling empires that were instrumental in fuelling Dubai's debt-driven growth, and reducing costs at a time when the city-state's revenues from trade, tourism and finance, have been reduced.

Last month, Dubai turned to the United Arab Emirates for a $10bn (€7.5bn, £6.9bn) loan.

The consolidation will leave fewer government partners for the foreign investors that had been banking on Dubai as their regional launchpad for investment in the gulf.

But officials and analysts say that only through an overhaul of the way Dubai does business will it be able to cope with the slowdown in growth.

"We are looking at consolidation across the board," says Nasser al-Shaikh, director-general of the department of finance. "Now is a golden time to create a more capable structure."

The first step has been the deep restructuring within Dubai Holding, the conglomerate owned by the ruler, Sheikh Mohammed bin Rashid Al Maktoum, where the merger of real estate and investment arms was preceded by deep staff cuts.

Dubai International Capital, the overseas investment arm, is being rolled into a sister investment vehicle, Dubai Group, whose chief executive has been appointed to oversee the united group.

Dubai World, the government-owned conglomerate spanning offshore developer Nakheel, investment company Istithmar, is undergoing a similar process of consolidation.

Jamal Majid bin Thaniah, the chief executive of DP World, has taken a more high-profile role within the ports operator's parent company, people aware of the matter say, as greater cost efficiencies are worked out.

Dubai World, after consultations with outside advisers, is set to unveil a strategic plan for a return to growth over the next month.

Separately, the transfer of Dubai World's legal title to the Investment Corporation of Dubai, the government holding company, is set to be completed. Emirates Airlines, the successful carrier, has also moved under the ICD umbrella.

Officials and bankers say ICD is likely to extend its reach further as the government attempts to streamline its assets.

Set up in 2006, the holding company grew in importance as officials realised that the various wings of Dubai Inc - including Dubai World, Dubai Holding and the government - had been raising debt in an ad hoc fashion, leaving them in the dark about the true extent of the emirate's liabilities.

Since the crisis struck, ICD has been able to use $6bn it raised from international banks in September to help retire maturing loans.