FOCUS:Dubai To Avoid Fire Sale After DP World Deal Collapses

The collapse of a deal that would have seen Dubai sell a stake in ports operator DP World (DPW.DIF) may show that the sheikdom will avoid a fire sale of its prized assets to pay off its debt pile.

The sale of the stake in the company could have raised about $1.2 billion at current market prices.DP World confirmed Monday that government-controlled Dubai World, which owns 77% of the company, had ended talks with an undisclosed private equity firm about a sale.

"This may indicate that for Dubai World there are other ways to finance their commitments than selling stakes," said Nabil Ahmed, director of Middle East research at Deutsche Bank AG.