Dubai’s leading developer Emaar is planning to sell hotels, clinics and schools as it seeks to raise funds worth $1.4 billion by disposing of non-core assets in the midst of a property slump in the emirate, reported the Financial Times.

Emaar, chaired by influential businessman Mohamed Alabbar, was closing in on a deal with several interested parties, stated the report citing senior sources.

The real estate market, one of Dubai’s main economic drivers, has been hit hard by a slump in regional demand since the oil price collapsed in 2014.

“This has to be about raising capital to strengthen the balance sheet,” said one banker.

“This is not the market environment you would want to sell assets in if you were being opportunistic,” he added.

In a statement, the developer of Burj Khalifa, the world’s tallest tower, said it regularly considered various financing options to streamline its business.

The company said it was looking to raise about $700 million through sale of its hotel portfolio, except for two prime properties.

Emaar is also selling the clinics and schools across its communities at a prospective value of $700 million.

Standard Chartered Bank had been hired to carry out the sale process, reported Financial Times, citing the sources.

Emaar’s share price, which has halved since its September 2014 peak, is down about 20 per cent this year, it added.