**Shares on the main stock indexes in Dubai and Abu Dhabi have tumbled for the second day in a row.**Both indexes were down about 6% after recording big losses on Monday.
Dubai World has unveiled plans to restructure $26bn (£15.8bn) in debt, its first comment since the crisis began last Wednesday.
It a statement, the firm said that it “intends to adopt a policy of regular communication and will provide further updates as the process develops”.
The proposed restructuring process will only include its main property firms, but leave other companies, which it described as “on a stable financial footing”, untouched.
Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the statement was good news.
“It shows they are still committed to their payments and it removes all fears that this is a complete default,” he said.
Last week, Dubai World asked creditors for an extension on repaying its debts. The news sent markets around the world plummeting.
On Sunday, the central bank of the United Arab Emirates (UAE) stepped in and announced a facility to provide banks with extra liquidity.
The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates.
On Monday, Dubai’s government distanced itself from Dubai World’s problems saying that it would not guarantee the company’s debt.
“[Creditors] think Dubai World is part of the government, which is not correct,” said finance minister Abdulrahman al-Saleh.