A dollar bond sale by Saudi-backed Gulf International Bank (GIB) was pulled after Dubai's move to delay repayment on billions of dollars of debt owed by its two flagship firms, sources said on Thursday.

In one of the first signs that Dubai's debt standstill could hurt global fundraising efforts in the rest of the region, plans to price GIB's five-year bond on Wednesday were cancelled after the emirate's shock announcement.

Dubai is a massive event and we decided it would be prudent to postpone the GIB deal, a syndicate member at one of the arranging banks told Reuters.

On Wednesday, Dubai said it would restructure debt of its state-run conglomerate Dubai World and subsidiary property firm Nakheel, seen to run to some $59 billion in liabilities.

The Saudi Arabian Monetary Agency and the Public Investment Fund of Saudi Arabia own a combined stake of over 97 percent in Bahrain-based GIB.

GIB had been expected to raise at least $500 million with pricing whispers at around 200 basis points over mid-swaps.

The deal was arranged by GIB, HSBC, UBS and Barclays.

Dubai's moves will likely lead to a risk reassessment of debt issued by the region's sovereign-linked firms.

There are other sub-sovereign issuers in the region that will need funding in the next year. They will now have to pay wider spreads, a London-based fund manager said.

United arab emirates Sale Dubai