On Wednesday, Al Arabiya reported that in its attempt to renegotiate some $26 billion in debt, Dubai World will offer banks one proposal which would comprise full repayment over a seven-year period with interest likely linked to LIBOR.

Officials from Dubai and neighboring emirate Abu Dhabi have been working with reforming experts to plan a viable debt restructuring plan acceptable to some 97 creditors to Dubai World, the indebted state-controlled holding company.

In November, Dubai told that it would ask creditors to postpone repayment on $26 billion in debt linked to Dubai World, sending shockwaves through markets.

Dubai was helped by a last-minute $10 billion bailout from wealthier Abu Dhabi to an embarrassing default on an Islamic bond linked to developer Nakheel, builder of manmade islands in the shape of palms.