Emirates finance chief: Dubai can resolve new woes (AP)

Dubai will ride out its latest financial troubles without a federal bailout for another major investment company seeking postpomnemt of debt repayments, the Emirates' finance chief said Saturday after the request raised new concerns about the city-state's credit woes.

Abu Dhabi will selectively assist neighbouring Dubai with its debt troubles, officials say. Dubai said on Wednesday it would delay debt payments issued by a major state-run consortium, sending global markets into a slide.

The smart money is still saying that Dubai is a sideshow. Fears of a "new financial meltdown" as a result of what amounts to a family feud in the United Arab Emirates look seriously overdone. Especially since it is Nakheel Construction that has asked for a standstill, not the whole of Dubai World.