All you need to know about the Dubai debt crisis

The origin: 

In the last week of November, the Dubai government announced it was planning to ask creditors to freeze repayment of debt worth billions of dollars of two of its flagship firms - Dubai World and real estate developer Nakheel. Dubai World, which runs 49 ports around the world,  is the conglomerate that spearheaded the Emirate's breakneck growth. It has USD 60 billion in liabilities and will seek a six-month standstill on its debts with all lenders. Nakheel was the builder of the famous three palm-shaped islands off the coast of Dubai. 

Impact on global markets: 

The news, which came close on the heels of Chinese banks seeking government aid, shocked global markets. The debt, though not major, has shocked investor sentiment that had taken the oil-exporting Gulf region to be a safe haven during the financial crisis. According to a Reuters report, international banks' exposure to Dubai World could be as high as USD 12 billion. 

Impact on India:

The real estate sector is likely to be the most impacted with several companies having an exposure to projects in Dubai's fast growing construction space. ICICI Bank and Bank of Baroda have said that they do not have any exposure.

Events till date:

December 2:

Gold sets new high, Asia stocks up on recovery bet

London's banks rebound as Dubai fears ease

Dubai World will not give up on crown jewels