Dubai: Business is showing signs of improvement in Dubai, and demand for office space is picking up, according to the chief executive of a major holding group based here.

"We have seen some improvement in all our business than the last four months.

"One good aspect is that banks are already liquid now and have started financing for personal loans," Mohammad Al Habtoor, Chief Executive Officer of Al Habtoor Group, told Gulf News. The company runs a diverse portfolio covering construction, properties, hotels and automobiles in the region.

"We are now experiencing some demand for office space. Lots of companies are calling and viewing the building. These are companies new to Dubai," Al Habtoor said, in reference to international interest to the Al Habtoor Business Tower, which was formally opened yesterday in Dubai Marina.

The office block was supposed to be open in December 2008, but was delayed. According to Niki Melvaney, managing director of Al Habtoor properties, of the 35 leasable commercial floors, "a considerable amount" has been leased already, to multinational and other companies, including investment firms and embassies.

"In terms of pricing, it ranges from Dh225 to Dh400 per square foot, depending on the floor [level]," said Melvaney, adding that the upper rent was Dh450 per square foot, "but as the market changed, we changed with it."

The government has taken several measures to ensure banks remain well capitalised.