Dubai World's creditors still need to approve the standstill and effectively have until December 28 to make a decision. That is when the grace period of Nakheel's bond ends. The government of Dubai has issued a new law allowing the conglomerate to file for bankruptcy if its restructuring is not successful. But <name>Kronfol</name> says, if the process focuses on necessary aspects, it will succeed.

"If the restructuring actually deals with Dubai's contingent liabilities," <name>Kronfol</name> said, "as a long-term solution, this actually really will help put the whole debt situation of Dubai behind us and really allow the markets to look more positively at 2010 and beyond."

Government sources say Dubai World's restructuring process could include asset sales, but they would be limited to the Nakheel and Limitless companies and not include Istithmar World, which owns U.S. Luxury retailer Barneys.