Middle East lawyers are moving to downplay fears over Dubai's future amid growing concerns regarding the Emirate's debts.

A host of international law firms, including Clifford Chance (CC), Latham & Watkins and Allen & Overy (A&O), have already won roles advising on the restructuring of Dubai World, which last week caused global panic when it emerged it wanted to delay debt repayments.

The state-backed conglomerate responsible for some of the Middle East's most high-profile projects has around $60bn (£36.3bn) of debt, with the Dubai state last week (25 November) asking creditors for a six-month debt standstill.

The news came as a surprise, causing panic in markets around the world, including the UK, where a number of banks are among institutions to have lent Dubai World money. 

Long-time Dubai World adviser CC is acting for the company, fielding a team including Dubai-based corporate partner Simon Clinton and restructuring partner Robin Abraham.

Latham, meanwhile, has been advising the Dubai authorities on matters relating to the standstill, fielding a team led by local office head Bryant Edwards. A&O is understood to be advising some of the banks acting as Dubai World's senior lenders although the firm would not confirm its position.

If creditors give their approval to the plans then the repayment of a $4bn (£2.4bn) bond issued by Dubai World subsidiary – and DLA Piper client – Nakheel will be delayed until the end of next May. Deloitte has been appointed to oversee a potential restructuring of the group. According to press reports, the Dubai Government has said that it will not guarantee Dubai World's debt. It is unclear if neighbouring emirate Abu Dhabi will step in to help Dubai.

However, Ashurst Middle East managing partner Nick Bryans (pictured) said: "The interest in the UK and US press in this matter is not reflected here – quite the opposite. I think in part the strong reaction was based on the manner in which this was announced, just ahead of the holiday. The financial markets were affected but appear to have recovered.

"I have no doubt that the debt issue will be solved and we still see significant signs that things are picking up, with a lot of new opportunities in the Middle East region."

A Dubai-based partner with a magic circle firm commented: "To us here in Dubai this news was not exactly earth-shattering because postponing the debt repayment was what they were always going to do."

One City-based magic circle Islamic finance partner added: "If sanity prevails they'll find the money and repay the debt, but there is a lot of hysteria and froth at the moment, so we will have to wait."