Global markets rebounded after taking a beating last week following Dubai's announcement that it may need an extension for the repayment of Dubai World and Nakeel's debt; but the events in Dubai could still hurt international investor sentiment towards emerging markets, analysts told CNBC.
Investor appetite to finance emerging markets, emerging market government debt, and borrowing for emerging market businesses, is where we will see the full ramifications of this, Matt Robinson, economist at Moody's Economy.com, said.
With investors already shaken and fearing that the full impact of the global financial crisis may not be over, speculation is rife on who may follow in Dubai's footsteps come 2010.
"The candidates are pretty much lined up," Beat Lenherr, chief global strategist at LGT Capital Management, said. "We will see more of the same in 2010," he predicted.