FT.com / Dubai World rebalancing provides blueprint for emirate

If Dubai sought proof of its connectivity with the global economy it received ample evidence last November when it released a now infamous statement requesting a standstill with creditors of Dubai World.

Fragile markets around the world were thrown into a tailspin, gold hit a record peak and fears about sovereign debt were heightened, propelling Greece to the forefront of investors’ minds.

Six months later and many of those fears have materialised in the wake of Europe’s sovereign debt crisis. Greece is centre stage and there is much nervous chatter about a double-dip recession. Yet, amid the gloom Dubai has delivered a positive message. After weeks of talks Dubai World has reached an agreement with its main creditors about its restructuring proposal.