Moody’s yesterday downgraded ratings on Dubai’s Jebel Ali Free Zone because of the re-export hub’s exposure to its parent, the indebted Dubai World government conglomerate.

The one-notch downgrade, from A3 to A2, comes as the ratings agency places all Dubai government-related entities on review for a possible downgrade because of limited transparency on the extent of support for state-backed companies.

Dubai’s slowing servicesled economy is struggling to lift itself out of the doldrums amid the challenge of refinancing its $80bn debt mountain and facing a property market collapse.

Financial Times