Dubai World: deal soon?

Among the debts that need to be paid, two Dubai World subsdiaries — Limitless and Nakheel — have Islamic loan or bond deals maturing in the next two months, and a dollar-denominated Islamic bond for Nakheel matures in January.

Investors wonder if  United Arab Emirates capital Abu Dhabi will once more come to Dubai’s rescue, after it helped out with a $10 billion lifeline in December. The UAE today pledged its support for Dubai but said the emirate had yet to ask for federal help.

Failing that, investors may have to roll over their debt, and so wait longer for payment, or get paid now but with a “haircut” of up to 40 percent, according to some media reports.