Dubai World’s request for a debt standstill has sent shockwaves through international capital markets and has put the development strategy of the emirate into question. The report analyzes Dubai’s debt structure and how reduced access to international capital markets will affect its economic options. It gauges the effect on various Dubai companies and their credit worthiness and discusses possible contagion on the regional and international level. The report argues that Abu Dhabi will try to forge a consensus for more concentration of responsibilities on the federal level in exchange for its ongoing financial help for Dubai. The ambitious development goals of the UAE and its wish to play a more visible role in foreign policy will also require a more centralized approach to planning and institution building. Finally, the report weighs various scenarios that could unfold as the Nakheel sukuk will expire on December 14, 2009.