When Dubai announced it was seeking standstill agreements for Dubai World's debt, the world took a collective gasp -- markets fell and many speculated that it could be the tipping point for a round of emerging market sovereign defaults. That fear is easing.
Dubai World confirmed Tuesday that only $26 billion -- not $59 billion as originally thought -- of its debt will be subject to the standstill agreement. It does not include the debt of DP World and Jebel Ali Free Zone, two of the company's entities that have well-established, viable revenue streams.
In addition, Dubai's ruler, Mohammed bin Rashid Al Maktoum, stated unequivocally on Tuesday that the government will not provide support...
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