It is well known that Dubai had earlier roiled markets with a request to delay debt payments late last year, but the latest update is that it now is aiming at repairing the damage to its reputation.

Nick Anstee, the 682nd lord mayor of the City of London, explained, "They are absolutely determined to mitigate that reputational damage by arriving at a solution because they want to continue to deal and trade with people who have been part of building Dubai to what it's today."

Back on 1st December, Dubai World declared that it was looking forward to transform terms on about $26 billion of debt. A sum of $4.1 billion was paid back by Property unit Nakheel PJSC (which is building palm-tree shaped islands off the emirate's coast) on 14th December, for a maturing Islamic bond following Abu Dhabi bailed out Dubai. Till date Dubai World has not been able to present a restructuring offer to lenders and did not confirm as to when a deal could be struck.

Anstee, who is the elected leader of the City of London, the U. K. capital's financial district, said that there is a great sense of urgency on bringing this matter to a positive resolution, even when officials in Dubai's government were not putting a timetable.

No names of the banks were given by Anstee, which were discussed with Dubai's government. Banks, which are among U. K.-based lenders and operate in Dubai, are Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc.