Where are the oil-rich Gulf states? That has been a recurring reaction in international markets since Dubai delivered its shock call for a standstill on the debts of its flagship Dubai World.
With hundreds of billions of dollars accumulated by Gulf governments during the oil-boom years, international officials say that surely someone can extricate Dubai from its financial troubles.
Throughout the dark days of the financial crisis, many analysts had played down worries about the Gulf, including heavily indebted Dubai, assuming that there was simply too much money sloshing around for any big-name company to default on its debt. Gulf sovereign wealth funds, after all, were being courted by western officials to help rescue troubled international banks.
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