DUBAI, United Arab Emirates (AP) — Dubai's government yesterday said it will pump up to $9.5 billion into Dubai World, outlining a long-awaited restructuring plan aimed at rescuing its debt-saddled chief conglomerate and recapturing the emirate's image as a business friendly oasis in the oil-rich Gulf.

The proposal, which still needs approval from creditors, is key in clarifying the options for scores of lenders owed the majority of the $26 billion in debt which Dubai World in November said it was seeking to restructure.

The conglomerate's woes came to symbolise Dubai's boom to bust as the global meltdown dried up the cheap credit on which the glitzy city-state had depended to fuel its meteoric growth.

"It's a confidence booster," said John Sfakianakis, chief economist at the Riyadh-based Banque Saudi Fransi. He added, however, that the announcement was just a "first step in Dubai's regrouping process" aimed at restoring its reputation.

The plan offers creditors full repayment on the principal of their outstanding loans over a five- to eight-year period by issuing new debt. It was not clear how much interest, if any, is being offered, but officials said the debt would not be backed by the government of Dubai, one of the seven semi-autonomous city-states making up the United Arab Emirates.

Sheik Ahmed bin Saeed Al Maktoum, the chairman of Dubai's supreme fiscal committee, said in a statement that the support aims to ensure Dubai World and property development arm Nakheel "are key contributors to the strong economic future of the Emirate of Dubai and the wider United Arab Emirates".

The plan calls for the restructuring of $23.5 billion of Dubai World's total debt, including $14.2 billion owed to creditors other than the government. The government made it clear that the newly-announced funds are the last it will offer.