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| UAE president backs Dubai leader | |
| (39 minutes later) | |
| The president of the United Arab Emirates has moved to reassure the shaken nerves of investors. | |
| Sheikh Khalifa bin Zayed al-Nahayan issued a statement saying the UAE economy was in a good condition. | |
| He also praised Dubai's leader, saying he managed daily "achievements". The Sheikh's comments come after almost a week of market turmoil. | |
| It was sparked when Dubai World, Dubai's highest-profile company, said it would reschedule part of its debts. | |
| Markets across the UAE have fallen sharply. The markets in both Dubai and Abu Dhabi fell by about 6% for the second day in a row. Qatar's main index closed down 8.3%. | |
| But major Western markets appear to be steadying, with all the main European stock markets higher in morning trade on Tuesday. | |
| Debt restructuring | |
| The UAE president said the Gulf region would not slip due to what he called the global financial crisis. | |
| Sheikh Khalifa also praised the ruler of Dubai - who is also his UAE vice president, prime minister and defence minister - saying Sheikh Mohammed bin Rashid al-Maktoum and his cabinet "face every morning challenges, but plan and remove all obstacles to score achievements". | |
| Dubai World has unveiled plans to restructure $26bn (£15.8bn) in debt, its first comment since the crisis began last Wednesday. | Dubai World has unveiled plans to restructure $26bn (£15.8bn) in debt, its first comment since the crisis began last Wednesday. |
| In a statement, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops". | In a statement, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops". |
| The proposed restructuring process will only include its main property firms, but leave other companies, which it described as "on a stable financial footing", untouched. | The proposed restructuring process will only include its main property firms, but leave other companies, which it described as "on a stable financial footing", untouched. |
| Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the statement was good news. | Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the statement was good news. |
| "It shows they are still committed to their payments and it removes all fears that this is a complete default," he said. | "It shows they are still committed to their payments and it removes all fears that this is a complete default," he said. |
| On Sunday, the central bank of the UAE stepped in and announced a facility to provide banks with extra liquidity. | |
| The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates. | The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates. |
| On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt. | On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt. |
| "[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh. | "[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh. |