the desert emirate into the Middle Eastern version of Las Vegas, Wall Street and, at times, Sodom and Gomorra, all rolled into one.

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If markets were looking for reassurances from Dubai that it would stand behind the conglomerate, they got none Monday.

"Dubai World was established as an independent company, it is true that the government is the owner, but given that the company has various activities and is exposed to various types of risks, the decision, since its establishment, has been that the company is not guaranteed by the (Dubai) government," Abdulrahman al-Saleh, director general of Dubai's Finance Department, said on Dubai TV.

"Consequently, the company's dealing with the various parties has been on this basis," hesaid.

Al-Saleh's comments were the first public remarks by a Dubai official since Thursday, the day after the emirate's government's announcement about Dubai World's request for a debt repayment postponement.

The lack of clarity or direction from the rulers of Dubai since the extent of the conglomerate's financial ills became known has been a major source of angst for investors.

Uncertainty about what step the emirate would take next had cast a pall on world markets late last week.

Investors returned to Dubai and Abu Dhabi's markets Monday with little news and plenty of questions. As a result, stocks took a dive.

Shares of Emaar Properties, the UAE's biggest developer, for example were down 9.86 per cent to 3.75 dirhams.

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