Dubai World unveiled unveiled a plan for restructuring $26bn (£15.8bn) of its borrowings. on Monday of its plan covering $26 billion of debt owed by its main property firms, Nakheel and Limitless.
The president of the United Arab Emirates Sheikh Khalifa bin Zayed al-Nahayan issued a statement saying the UAE economy was in good condition.
Markets across the UAE fell sharply for the second day in a row. Shares in Dubai fell by 5.61% and Abu Dhabi fell by 3.57%. Qatar's main index closed down 8.27%.