...com

Following are analysts' comments on the statement.

**********************************************

LATEST COMMENTS

RICHARD SEGAL, ANALYST, KNIGHT CAPITAL, LONDON

"In a similar vein to weekend comments from UAE officials that they would pick and choose which Dubai entities to support, investors will now find it easier to pick and choose which assets will prove safest during a crisis of confidence. Sovereign and sovereign guaranteed assets are most likely to benefit from bailouts. Investors had received a similar lesson in Ukraine, where restructurings were requested for Naftogaz and Ukrainian Railways, but government bonds were serviced in full and on a timely basis."

MICHAEL GANSKE, HEAD OF EMERGING MARKET RESEARCH,

COMMERZBANK, LONDON

"This is a clarification, it is not surprising. Any entity owned by a sovereign has only an implicit guarantee, not an explicit guarantee, it does not mean the state will bail it out. We have seen this in Kazakhstan. A default is becoming more likely, so there is a short-term knee-jerk reaction. At the end of the day it should be positive for Dubai, Dubai's sovereign risk should go down."

PREVIOUS COMMENTS

MOHIEDDINE KRONFOL, ALGEBRA CAPITAL, MANAGING DIRECTOR

"They have confirmed there is going to be a restructuring and are doing what they can to differentiate between the government and companies.

"It doesn't take away from the fact that you have a major potential event that is unraveling. People's expectations aren't going to be met with this announcement and will enter a new reality in the region and one that, over time, will put increasing pressure on all issuers to improve transparency and corporate governance.

"The fact you still don't have the facts means this is a fluid situation and you will have authorities trying to contain and minimize the fallout."

MOHAMMAD ALI YASIN, CHIEF EXECUTIVE, SHUAA SECURITIES

"What's important for people in the investment community is not to speculate: we shouldn't expect anybody to bail anybody out. It is a commercial decision, done on commercial terms.

"(Abdulrahman al-Saleh) is trying to refocus the issue where it should be, on a commercial decision and not on the success and failure of the Dubai model, Dubai as a city.

"Would I have liked more information? Absolutely. Would I have liked more details? Indeed. But this is a major decision and it had major implications.

"The banks that are the debtors need to come and sit with the government ... discuss the rescheduling of payment."

VYAS JAYABHANU, HEAD OF INVESTMENTS, AL DHAFRA FINANCIAL:

"All investors were expecting some statement today, now they have come up with exactly the opposite.

"(Today's announcement) means that the banks are going to have an issue and that the investors in these sukuks are obviously in panic.

"A lot of the banks have some sort of exposure to Dubai holdings and Nakheel, but only National Bank of Abu Dhabi so far has come out with a statement. We still expect some action by the federal government eventually, otherwise it will ruin the economic sector.

"We expect the markets to continue to be on the selling side.

(Reporting by John Irish, Amran Abocar, Nicolas Parasie; editing by Patrick Graham)