Abu Dhabi

Citigroup Inc said on Tuesday the Abu Dhabi investment Authority filed an arbitration claim against it, alleging misrepresentation over a $7.5 billion investment by the sovereign wealth fund in the bank.

The sovereign wealth fund bought equity units from the US bank in 2007. In the original deal with ADIA, the Citigroup securities must be converted into common stock at a price between $31.83 and $37.24 a share between March 2010 and September 2011.

Dubai government doesn’t intend to guarantee Dubai World's debts, government official said on Monday. That means creditors will be affected by the conglomerate's restructuring in "the short term".

As Abdulrahman al-Saleh, director general of Dubai's department of finance reported, market reaction to Dubai World's announcement last week was amplified and did not match the extent of the conglomerate's woes. 

 On Thursday fears at the world markets that a Dubai debt default could reignite the financial turmoil of the credit crisis impacted European and Asian equities, lifting government bond prices and pulling the U.S. dollar off of recent lows as investors sought out safe havens.

"This an important reminder that the credit crisis is forgotten but not gone," Robert Rennie, strategist at Westpac Global Markets Group, said in a note.