Dubai: World lacks understanding of debt crisis

[December 01, 2009]  DUBAI, United Arab Emirates (AP) -- Dubai's ruler says the emirate's economy is "strong" and "solid" amid financial meltdown in the former Arab boomtown.

Sheik Mohammed bin Rashid Al Maktoum told the Al Arabiya TV channel that the world did not understand Dubai's announcement on restructuring of the emirate's deeply indebted conglomerate Dubai World.

The remarks came as the Dubai debt crisis dragged down the main stock markets in the Emirates for a second day on Tuesday and also caused other markets in the Gulf to plummet.

Mohammed told the Dubai-based channel that the crisis that erupted on the global markets in the aftermath of Dubai World's request to freeze its debt indicates a "lack of understanding of what is happening in Dubai."

[Associated Press; By BARBARA SURK]

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