The progress made by Dubai World for its debt restructuring has had positive impact over sentiments of the financial market. Shares of most of the banks listed on Dubai Financial Market (DFM) and Abu Dhabi Securities Market (ADX) reported significant hike on Thursday.

Aiden Birkett, Chief Restructuring Officer of Dubai World said, "This proposal represents the best possible solution for all stakeholders. The proposal certainly offers the company a strong future and the opportunity to maximize the value of its assets over the medium to long-term."

Ashok K Gupta, Chief Executive (GCC Operations), Bank of Baroda, having offices in the UAE, hailed the UAE government’s move to push funds worth Dh34.89 billion in Dubai World and Nakheel.

The Dubai Financial Support Fund (DFSF), through Dubai government, has initiated an exercise to convert $8.9 billion of debt and claims in to equity in a bid to fund the company's working capital and interest payment commitments. The move would help to improve the debt-equity ratio of the company and strengthen its market position.