DUBAI, (Reuters) – Dubai’s handling of the debt crisis surrounding its flagship conglomerate Dubai World will affect its ability to attract future investment, British Business Secretary Peter Mandelson said on Sunday.

“Dubai has to be conscious of the fact that how it resolves its current problems will mean a great deal for the Dubai brand, its reputation and how it secures investment from overseas in the future,” he told a British business group meeting in the Gulf Arab emirate.

Dubai World rattled global markets on Nov. 25 with plans to request a delay on repaying $26 billion in debt linked to its main propery units Nakheel and Limitless World. It staved off default on a $4.1 billion Islamic bond linked to Nakheel after a last minute bailout from Abu Dhabi.