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The chips come in and the stakes are alluring. They ought to be, for in contention is one of the planet’s most treasured cities-the emirate of Dubai. Just at the beginning of the week, Dubai World emerged out of a primary meeting with its creditors- requesting them to get a standstill on US$2-2 billion of its own debt to get six months. In fact the whole affair has been conducted under an atmosphere of strict secrecy and security, together with attendees asked to be tight lipped about the event. What’s surfaced is the Dubai World executives formed a Committee to make a presentation to their case in asking the moratorium. They certainly were presumably assisted by executives from Deloitte and also other auditors. What’s going to happen now is the request will be contemplated in the light of their demonstration and the recouping of their assets and liabilities, definitely redrawn to demonstrate their capacity to stay solvent even after the debt has been repaid.Meanwhile, the 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 this has not sent enough favorable signs through the spot. In the end it just may possibly be asked to pay off the debt or part of it in order to prevent the negative opinion which has resisted throughout the whole world.If this comes to pass, the following question is if Dubai will cure its present crisis and can that recovery be to get a short or long term. Analysts are divided on this issue, however it’s clear the Dubai’s Government will itself have to do some thing in this regard, rather than to await the discussion of market moves. It is understood that market forces are driven by both consumer and business opinion, when that belief remains negative or there is doubt about future activity, markets will observe a lack of significance. If anything, the Dubai Government may have affirmed Dubai World in this time of tragedy and given a favorable signal on the planet. By first declaring it would encourage the thing and later withdrawing its aid, it caused mass confusion as well as infact put in place rumors that the emirate it self was in danger of defaulting because of over-extending its plans at the boom period. Nothing can be further from the truth as the Dubai World and the Government of Dubai are well equipped to address any financial catastrophe.Having said that, in the short term the Government might assist companies in receiving charge to complete the outstanding projects. Everybody else in the building industry knows that there is a significant lag between your booking and the end of projects. Second, by renewing the more three year visa for workers, Dubai would signal it is ready to take on expatriate workers again to its end of old projects and starting new ones. As matters are Dubai accommodation sector is going downhill, with all accommodation in Dubai becoming a buyer’s match. A further dip in the market is likely by March-April 2010, after which the industry is forecast to recuperate by 2011. Nevertheless, it’s anybody’s guess as to what will happen, and that’s the reason the Government should take action to see that Dubai is back on track again- the sooner the better. There’s a lot at stake.