The chips are in and the bets are all hot. Only at the beginning of the week, Dubai World emerged from a first meeting with its creditors- asking them to get a stand still on US$22 billion of its own debt to get six months. In reality the entire affair was conducted under an atmosphere of strict secrecy and security, with attendees asked to become tight lipped about the proceedings. What has surfaced is that the Dubai World executives formed a Committee to produce a demonstration for their case in requesting the moratorium. They certainly were presumably assisted by executives in Deloitte and different auditors. What’s going to happen now is that the request will likely be contemplated in the light of their demonstration and the remainder of their assets and liabilities, definitely redrawn to demonstrate their ability to remain solvent despite the debt has been repaid.Meanwhile, most of the entire world knows this the neighboring emirate of Abu Dhabi has contributed US$10 billion into Dubai World to help meet its existing debt obligations on a US$4.1 billion Islamic Sukuk bond. What’s amazing is that even this have not delivered enough positive signals throughout the region. In the end it only may possibly be asked to cover off the debt or part of this in order to prevent the negative sentiment which has resisted all through the whole world.If this comes to pass, the next question is if Dubai will cure the present crisis and can which recovery be to get a short or a long term. Analysts are divided on this issue, nonetheless it’s clear the Dubai’s Government will have to do something in this regard, instead of to await the interaction of market moves. It is known that market forces are driven by consumer and business sentiment, so when that opinion remains negative or there is doubt about future activity, markets will find a loss of value. If anything, the Dubai Government may have supported Dubai World within this period of crisis and also given a good signal on the planet. Initially declaring that it would encourage the thing and later withdrawing its support, it caused mass confusion as well as in fact set in place rumors which the emirate it self was at risk of defaulting due to over extending its plans at the boom phase. Nothing can be further from the facts as both Dubai World and Government of Dubai are well equipped to deal with any financial catastrophe.That said, in the short term that the Government could assist businesses in getting charge to accomplish the projects that are outstanding. The present creditcrunch means that new projects are confronting financing difficulties in getting their projects off the bottom. Every one in the construction industry knows that there is a significant lag between your booking and also the completion of projects. Secondly, by minding the longer three yr visa for workers, Dubai would indicate it is about to undertake expatriate workers again for the conclusion of old projects and launching new ones. As matters are Dubai accommodation sector is going downhill, together with accommodation in Dubai being a buyer’s match. A additional dip on the industry is likely by March-April 2010, after that the marketplace is expected to recoup by 2011. Nevertheless, it’s anyone’s guess as to what will really happen, and that is why the Government needs to take action to find that Dubai is back on the right track again- the earlier the better. There’s a lot at stake.