While Egypt is not immune to the effects of Dubai's economic bust, it stands to gain in foreign investments after years of reforms – a boon that could lend stability to the regime of President Hosni Mubarak, a key US ally in the region.
The United Arab Emirates central bank guaranteed all deposits in the banking system Sunday, seeking to calm markets made nervous by Dubai World's debt payment crisis. Asian markets rose Monday on the news.
As conglomerate Dubai World delays debt payments, most analysts look for Arab Monetary Fund to step in to avert a crisis in financial markets. That's not likely, though, until Sunday.
A sell-off on Friday drove Dow down 154 points, as traders took stock of postponed debt payment at conglomerate Dubai World.