The central bank of the United Arab Emirates on Sunday set up a special liquidity facility and said that it stood behind local and foreign banks operating in the country, according to Reuters. It’s unclear if the central bank is preparing to issue a further statement before markets re-open on Monday after a four-day religious holiday.

Members of the Dubai government reportedly met with central bank officials in Abu Dhabi on Saturday to discuss potential measures to limit the fallout from Dubai World’s decision to restructure.

Meanwhile, an unnamed official in the government of Abu Dhabi told Reuters on Saturday that Abu Dhabi “will look at Dubai’s commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts..... Some of Dubai’s entities are commercial, semi-government ones. Abu Dhabi will pick and choose where to assist.”

On November 25, the emirate’s wholly government-owned holding company said that it would ask creditors for a standstill until May 2010. Dubai World has liabilities of $59 billion at the end of December 2008.

27 Nov 2009 -

No great Sheikhs

27 Nov 2009 -

If the numbers are right...

27 Nov 2009 -

Communication Gulf

25 Nov 2009 -

Better late than never