Abu Dhabi says it intends to "pick and choose" how to assist its debt-laden neighbor Dubai. "We will look at Dubai's commitments and approach them on a case-by-case basis," a high-ranking government official in Abu Dhabi told Reuters on Saturday. "It does not mean that Abu Dhabi will underwrite all of their debts."

Al Jazeera on Saturday reported that the "case-by-case" support "is likely to disappoint many investors who assumed the city would provide a safety net for its neighbor." The Dubai shock came shortly after a Kuwaiti investment company requested a standstill on the repayment of US$10 billion of debt and a $22 billion debt moratorium announced by a Saudi company, raising fears of the Middle Easter banking sector being hit by a series of defaults.

The global financial community has been counting on Abu Dhabi to act as a relief pitcher to stem the spread of the Dubai shock. Abu Dhabi controls 95 percent of oil exports in the United Arab Emirates, which is the world's fourth-largest exporter and operates the world's largest state investment fund valued at around $630 billion. Bank officials from Dubai and the UAE met in Abu Dhabi on Saturday and discussed measures to keep state-owned investment firm Dubai World's profitability from worsening and to prevent banks in the sheikdom from having their credit ratings lowered even further, according to local daily The National.

Dubai World has begun looking into the repayment of $4 billion worth of Sukuk or Islamic bonds on Dec. 14 by its property arm Nakheel. Nakheel, which is the developer of ostentatious mega-projects like the Palm Jumeirah manmade island, is expected to be able to allay investors' concerns and catch its breath if it succeeds in redeeming its Sukuk bond obligations. An Abu Dhabi government official said, "The central bank of the UAE will announce measures on Monday designed to minimize the impact on financial markets."