DUBAI faces the first major hurdle in its struggle to resolve its debt crisis today as the $3.5bn (£2.2bn) bond by state-owned firm Nakheel expires.
Last night there was no indication whether the Islamic bond, or sukuk, would be repaid on time. But the sukuk closed higher at 54 cents to the dollar on Friday on speculation that Nakheel, the property arm of Dubai World, would meet the deadline.
The outcome will dictate sentiment for the region. Markets were thrown into disarray after Dubai World asked for a moratorium on its debt repayments on 25 November.