"Creditors need to take part of the responsibility for their decision to lend to the companies," director general of Dubai's Department of Finance Abdulrahman al-Saleh told Reuters. "They think Dubai World is part of the government, which is not correct."
Dubai World has since announced a restructuring of its business, which will affect its property companies Nakheel and Limitless.
"The total value of debt carried by the companies subject to the restructuring process amounts to approximately $US26 billion, of which approximately $US6 billion relates to the Nakheel sukuk (Islamic bonds)," the company said.
Stocks have continued to fall across the world as fears over the state's debt problems continue to grow, with its status as an investment haven coming into question.
Meanwhile, a private gauge of manufacturing activity has recorded growth for a second consecutive month, but also says the industry has improved due to stronger employment figures.
The Australian Industry Group-PriceWaterhouseCoopers performance of manufacturing index has fallen 0.5 points to 51.2 in November - still above the 50-point level separating expansion from contraction.
"The modest growth in activity in November underlines the tentative nature of the recovery," AIG chief executive Heather Ridout said in a statement. "While new orders growth remained in positive territory, the stronger pace of improvement evident in October was short-lived," she added.
"These results suggest there remains a considerable way to go before activity recovers from the setbacks over the past 18 months."
Building approvals fall in October
The number of total dwelling units approved for construction fell by a seasonally adjusted 0.6% in October, according to the latest figures from the Australian Bureau of Statistics.
Additionally, private sector housing approvals grew for a tenth consecutive month by 5%, while approvals for "other dwellings" fell by a seasonally adjusted 19.3%.
The value of total building approvals fell by 7.2% in October, while the value of new residential building approvals also dropped by 0.3%. The value of alterations and additions rose by 0.3%, with the value of non-residential building approvals falling 14.4%.
The Australian sharemarket has opened slightly lower today due to weak results from Wall Street, while investors are nervous ahead of the Reserve Bank of Australia's board meeting this afternoon at which a decision to lift the official interest rate to 3.75% is likely.
The benchmark S&P/ASX200 index was up 7.25 points or 0.15% to 4708.6 at 11.30 AEST, while the Australian dollar has also opened slightly lower to US91c.
NAB shares have fallen 0.5% to $28.48, while Commonwealth Bank shares have gained 1.1% to $53.36. Westpac lost 0.5% to $24.03, as ANZ fell 0.5% to $22.03.
Mining giant Rio Tinto has now completed the sale of Alcan Composites to Schweiter Technologies for $US349 million. The company had flagged the sale of several of it assets during February 2008.
"As well as Alcan Composites, these transactions include Ningxia (aluminium), Potasio Rio Colorado (potash), Corumbá (iron ore), Jacobs Ranch (coal), Alcan Packaging Food Americas, Maules Creek (Coal & Allied) and the Cloud Peak IPO (coal)," Rio said.
The company also announced that the proposed sale of 56% of Alcan Engineered Products Cable division will not be complete, with the sale itself terminated.
Metcash confirms 2010 guidance
Grocer and liquor wholesale Metcash has confirmed its guidance for up to 10% in pre-abnormal earnings per share for the 2010 financial year, and recorded a 37% rise in net profit to $109.2 million for the half year to 31 October.
"As economic conditions continue to improve, we reiterate our guidance of 7-10% growth in pre-abnormal earnings per share for the year to 30 April 2010," chief executive Andrew Reitzer said in a statement to the ASX. "The trading environment is strong, however low price inflation continues to hamper trading opportunities across all of our business pillars."
The company also said revenue has risen 6.5% to $5.7 billion, up from $5.27 billion. Reitzer said the company has been hurt by the IGA Distribution division.
"IGA continues to post strong underlying growth, both in terms of comparable stores and real sales, with our retail development activity recovering quickly to levels experienced before the global financial crisis."
Stocks in the US have only managed to record marginal gains due to hopes regarding the future of Dubai World's debt problems. The Dow Jones Industrial Average gained 34.92 points or 0.34% to 10,344.84.
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