From Theage.com.au: Dubai shook investor confidence across the Persian Gulf after its proposal to delay debt payments risked triggering the biggest sovereign default since Argentina in 2001.

The cost of protecting government notes from Abu Dhabi to Bahrain rose, extending the steepest increase since February as Dubai World, with $US59 billion ($64 billion) of liabilities, sought a “standstill” agreement from creditors……………………………Full Article: Source