United Arab Emirate sharemarkets fell the most in more than a year as mainly overseas investors sold out, slicing $US9 billion worth of value from stocks.

Dubai's main index of stocks closed 7.3% lower at 1940.36, while neighbouring Abu Dhabi plunged 8.3% to 2668.23. Other Gulf sharemarkets, including Saudi Arabia, were still closed for holidays.

Most UAE stocks closed near their lowest-allowed trading limits for the day, set at 10% for liquid stocks. Dubai allows less frequently traded shares to fall a maximum of 5% in any one session.

One of the biggest losers was Nasdaq Dubai-listed DP World, majority owned by Dubai World. It last traded 15% lower. Plans to restructure Dubai World, which is struggling with liabilities of about $US60 billion and seeking a debt standstill, triggered last week’s financial crisis.

Dubai's debt could total $US150 billion if bilateral loans are included, according to some estimates, as the $US84.2 billion of debt only includes capital market obligations such as bonds, sukuk and syndicated loans for Dubai Inc companies.

Meanwhile, the Dubai government says it won't guarantee the debts of Dubai World and that creditors should help it restructure. This message was delivered by a top government official in an interview on state-run Dubai TV.

"The company received financing based on its project schedule, not a government guarantee ... they [the lenders] have deemed Dubai World as part of the government and this is not true," finance director general Abdulrahman Al Saleh said.

"The government is the owner of the company, but since its foundation it was established that the company is not guaranteed by the government. Creditors need to take part of the responsibility for their decision," he said.

Moody's Investors Service said the planned restructuring of Dubai World was unlikely to threaten the credit quality of the government of Abu Dhabi and the federal government of the UAE.

Moody's said the restructuring had effectively reduced the government's contingent liabilities by highlighting the limits of government support for indebted state-owned companies.