"What we understand today is there is no systemic risk," French Economy Minister Christine Lagarde said. "It's not a drama for the world of finance and the impact seems to be essentially regional."
She briefed reporters after a regular meeting with fellow ministers from the euro zone and said European Central Bank President Jean-Claude Trichet had reassured ministers that "there is little consequence for European banks".
Similar reassurances came from Luxembourg's Jean-Claude Juncker, chairman of the meeting.
"The fallout ... will be very minor indeed and there is no cause for concern there," he told a news conference.
"The events in Dubai are not going to stop the euro zone returning to growth."
Global share market took a pounding when news broke last week that state-controlled Dubai World, which led the emirate's transformation into a regional hub for finance, investment and tourism, was unable to pay its debt.
But on Tuesday, Asian, European and U.S. stocks regained ground following the lead from Wall Street overnight as fears of contagion eased, despite further falls in stock prices in Dubai, Abu Dhabi and Qatar.