On November 25, 2009, Dubai shocked the world by requesting a moratorium on debt repayment. Foreign banks had previously pumped significant amounts of money into Dubai, knowing that they would suffer huge losses if the emirate defaulted on its debt. Thus, Dubai’s request prompted financial markets worldwide to plummet immediately. Revelations that Nakheel, a subsidiary of the state-run Dubai World, had suffered losses of US$3.64 billion since June 2009 caused further financial turbulence, especially in Dubai’s stock market.