Dubai: The latest corruption probe by the Dubai Government might raise economic fears, but will help boost investor confidence in the long run, analysts said.

"It's a positive development. With the latest crackdown, the government is sending a strong message. It will help restore investor confidence," Sudhir Kumar, managing director of Realtors International, a property consulting firm, told Gulf News.

However, Reuters said yesterday that a series of financial scandals at major Dubai firms threatens to derail the emirate's ambitions to become an international business hub unless the government tackles corruption head on.

"Propelled into the global limelight by glitzy projects such as the world's tallest tower, Dubai has long sought to transform itself into a global player, partly by assuring investors that it offers a world-class legal system as well as zero tax," a Reuters report said.

But at least four police investigations launched this year into executives at major government-linked real estate and financial firms have raised fears that a lack of regulation and transparency could hamper investor confidence, it said.

Gulfnews: Dubai investors fear impact of corruption allegations