If Dubai Sneezes, Does Rest of the World Catch a Cold?

While the United Arab Emirates’ Central Bank announced today that it “stands behind” local and foreign banks operating in the country, a UAE newspaper believes the world market reaction to Duba's debt repayment was "blown out of proportion."

The UAE Central Bank has offered banks access to money in a special "additional liquidity facility linked to their current accounts at the central bank,” according to the UAE’s official WAM news agency.

The statement came days after Dubai's announcement that it has asked for a six-month stay on its debt repayments for Dubai World rattled world markets.

But today, the UAE’s English-language daily newspaper, the Gulf News, said that “the global reaction to Dubai's announcement that it is restructuring Dubai World, the UAE's largest holding company, is being blown out of proportion.”

"It seems now, if Dubai sneezes, the rest of the world catches a cold. It has become more evident since Wednesday, especially after the Dubai Government announced the restructuring of Dubai World, judging by the global media outcry. The impact of the announcement appears to have been felt more outside the UAE or Gulf Cooperation Council than in Dubai,” Gulf News reported.