The chips have been in and the bets are hot. They ought to be, for in contention is just one of the world’s most treasured cities-the emirate of Dubai. Just at the start of this week, Dubai World arose from a first meeting with its creditors- asking them to get a standstill about US$2-2 billion of its own debt for six months. In fact the whole affair was conducted under an atmosphere of strict secrecy and security, together with attendees asked to be tightlipped about the event. What’s emerged is the Dubai World executives formed a Committee to produce a presentation for their own case in asking the moratorium. These certainly were presumably assisted by executives from Deloitte and different auditors. What’s going to happen now is that the request will be considered in the light of this demonstration and the recouping of their assets and obligations, definitely redrawn to show their capacity to stay solvent despite the debt was repaid.Meanwhile, most of the world already knows that the neighboring emirate of Abu Dhabi has given US$10 billion to Dubai World to help meet its existing debt obligations on a US$4.1 billion Islamic Sukuk bond. What is amazing is that this have not sent enough positive signals through the region. In the long run it just may possibly be required to cover off your debt or part of this so as to stop the negative sentiment which has resisted all through the whole world.If this comes to pass, the following question is if Dubai will get over the present crisis and will that recovery be for a short or long term. Critics are divided on this matter, however it’s apparent the Dubai’s Government will itself have to accomplish something in this regard, rather than to await the interaction of market forces. It is known that market forces are driven by both consumer and business sentiment, when that belief remains negative or there is doubt about future actions, markets are going to see a lack of value. If such a thing, the Dubai Government might have affirmed Dubai World in this time of tragedy and contributed a positive signal to the world. Initially declaring it would encourage the thing and later withdrawing its aid, it caused mass confusion as well as infact set in place rumors that the emirate it self was in danger of defaulting as a result of overextending its plans at the boom period. Nothing could be further from the facts 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 could assist organizations in getting charge to accomplish the projects that are outstanding. The current recession usually means that fresh projects are confronting financing difficulties in getting their projects off the floor. Every one in the construction industry knows there is a substantial lag between your booking and the end of projects. Second, by minding the three yr visa for workers, Dubai would indicate it is about to take on expatriate workers again for the completion of old projects and starting new ones. As things are Dubai accommodation business is certainly going downhill, with all accommodation in Dubai becoming a buyer’s game. Except for Dubai marina flat, Dubai condos and Dubai Blvd – that includes seen any consequences and even appreciation in value, generally Dubai apartment rental, Dubai Apartments, and Villas in Dubai have depreciated in value over the last few months. A additional dip on the current market is expected by March-April 2010, after which the industry is expected to recoup by 2011. However, it’s anybody’s guess about exactly what will really happen, and that’s the reason the Government needs to take action to see that Dubai is back on the right track again- the earlier the better. There’s too much at stake.