Exclusive Analysis provided the following foresight

Dubai World (DW), a state-owned property conglomerate asked creditors for more time to repay around $60bn of debt.

DW also revealed it would restructure most of its operations with the exception of Dubai Ports World and Jebel Ali Free Zone.

These developments will have considerable negative implications for the construction and financial sectors in the United Arab Emirates in the one to two-year outlook, reported Exclusive Analysis (EA).

EA issued the following comments in a incident assessment.

• Dubai World's failure to repay its outstanding debt is almost certainly due to Abu Dhabi's refusal to provide financial support, indicating a high risk of default by state-owned entities in Dubai.

• Dubai is likely to see still more project delays and cancellations. High-end property developments are especially at risk, whilst transport, infrastructure and cash-generating operations are somewhat more secure.

• The exclusion of Dubai Ports World and Jebel Ali Free Zone from DW's restructuring will impact negatively on the compensation of investors, which is highly unlikely to be comprehensive or timely.

• As Abu Dhabi is likely to be significantly less affected than Dubai by the impact of DW's move on credit availability, political and economic power will shift increasingly from Dubai to Abu Dhabi going forward.

• Dubai World's non-payment will considerably decrease local and foreign credit availability in Gulf Co-operation Council economies (Saudi Arabia, Kuwait, Bahrain, Oman, the United Arab Emirates and Qatar), though Saudi Arabia and Qatar will be significantly less affected than Bahrain and Kuwait.