Govt promises to bring Dubai World out of crisis

The Dubai government today promised to pump in all necessary resources to ensure long-term success of Dubai World, even as the state-owned investment holding firm's huge debts adversely impacted the markets world over.

"We want to ensure resources are deployed in the full knowledge that they are used to enhance the businesses of the Dubai World Group, build on the restructuring that has already been taking place and ensure long-term commercial success," Dubai government's Supreme Fiscal Committee chairman Shaikh Ahmad Bin Saeed Al Maktoum said in a statement.

"Our intervention in Dubai World was carefully planned and reflects its specific financial position," Gulf News quoted Shaikh Ahmad as saying in the statement.

"The government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react," he added.

Dubai World, which manages and supervises a portfolio of businesses and projects for Dubai government, yesterday said it would ask creditors for a "standstill" on paying back its $59 billion debt until at least May.

Global markets went into a tailspin on Dubai crisis. The FTSE 100 in London suffered its worst single-day dip since March, while Asian exchanges also fell sharply.

After a fall of over 400 points yesterday, Indian stock market today lost over 600 points in initial trade, but recovered sharply and closed with a 223-point loss.