Dutch companies wanting to invest in Dubai will no longer be able to insure their investment with the Dutch government. Minister of Finance Wouter Bos no longer wants to stand as guarantor for financial losses if Dubai does not pay its bills.

Dubai, which is one of the seven United Arab Emirates, is suffering badly from the financial crisis. This has led to the Netherlands facing a bill for 350 million euros from Dutch businesses that insured their investments with the government before the crisis.

Under normal circumstances, the business community can approach the government for a financial guarantee. However, Mr Bos says the situation in Dubai is now so uncertain that he is temporarily stopping export credit insurance.

Photo of Dubai skyline by Radio Netherlands Worldwide (flickr)