The tumble in bonds of Dubai’s state-controlled companies to record lows signals growing concern more borrowers will fall behind on debt payments as Dubai World seeks to restructure $26bn of obligations.

'We are concerned that it’s just not Dubai World that has issues,' said Oliver Bell, the head of Middle East and Africa investment at Pictet Asset Management in London, which has $120 billion under management. 'The health of other government- related entities is in question.'