Dubai World debt plan crucial

The difficult process of restructuring the $26 billion debt of troubled Dubai World is coming to a close. In a strong statement, Shaikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said that the restructuring proposal will be "fair" and announced "very soon".

The process is moving along with necessary secrecy, but leaks from interested parties surface occasionally as they seek to influence the process.

When the final settlement is in place, the announcement will be important for Dubai as it will be a chance to get beyond the difficulties of the past year, and start to focus on rebuilding Dubai. As Shaikh Ahmad said, Dubai should focus on its core business of tourism, re-exporting goods, logistics and financial services to ensure growth.

One of the most important parts of the final settlement will be to pay Dubai World's commercial creditors and contractors, so that money comes back into the business world of Dubai and can start to circulate. The major creditors can pay their suppliers, and sub-contractors, who will pay their staff, who will pay their bills. This is a vital process to restore the traditionally strong commercial confidence of Dubai's business community.