DUBAI'S related news

Stocks tumbled Friday afternoon as fears about the fallout from Dubai's debt problems rattled Wall Street in a thinlytraded half-day session following Thanksgiving. The Dow Jones Industrial average fell 1.5%, (-155 pts, close: 10,309.92), after closing Wednesday at a 13-month high. The S&P 500 (SPX) lost 1.7% (-19 pts, close: 1,091.49). The Nasdaq composite lost 1.7% (-37 pts, close: 2,138.44). All financial markets were closed Thursday for Thanksgiving, and the stock market closed at 1 p.m. Friday. Trading volume was very light with many Wall Street pros taking a five-day weekend. U.S. light crude oil for January delivery fell US$1.91 to US$76.05 a barrel on the New York Mercantile Exchange. (CNNmoney)

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The Dubai government shocked global investors late Wednesday by saying it needed at least a six-month defermenton the $60bn in debt owed by Dubai World and Nakheel. Dubai World is the government-owned holding company forDubai, the most populous of the seven Emirates that make up the United Arab Emirates. Nakheel is its real estate arm. Dubai'sconstruction boom has helped transform the Emirate into one of the world's financial centres, as well as a tourist hot spot. ButDubai has not been immune to the real estate collapse that has hit the rest of the world, with values plummeting even as priceyprojects continue to get underway. (CNNmoney)

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The United Arab Emirates’ central bank eased credit for lenders and said it “stands behind” the country’s local andforeign banks as they face losses from Dubai World’s possible default. Banks will be able to borrow money from the centralbank for half a percentage point above the three-month local benchmark interest rate, the Abu Dhabi-based regulator said inan e-mailed statement yesterday. Dubai World, a state-owned holding company struggling with US$59bn of debt and otherliabilities, said Nov. 25 it would seek a standstill agreement with creditors and an extension of loan maturities until at least May30, 2010. (Bloomberg)*

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Malaysian construction companies are not likely to be hit by the debt crisis affecting Dubai, said industry players.Dubai has been struggling to ease fears of a massive debt default after it moved to delay repayments at twoflagship firms, which has shook confidence in the Middle East as a centre for investment. Master BuildersAssociation Malaysia president Ng Kee Leen said most of the Malaysian construction companies had either pulled out or were at the tail-end of completing their construction projects there. (StarBiz)