Abu Dhabi, Dubai's oil-rich neighbour in the United Arab Emirates, is to bail out the emirate with $10bn to enable it to meet its immediate debt obligations and allow the payment of a $4.lbn sukuk bond related to Dubai World's real estate subsidiary, Nakheel. Dubai's government said that the remaining capital would be used to pay interest, contractors, suppliers and operating costs until the company reaches agreement with its creditors on the remaining portion of Dubai World's $26bn debt. Abu Dhabi has contributed more than $25bn in capital injections to Dubai this year.rnThe decision by Dubai's government not to rescue Dubai World, a large state-owned company, amid confusion regarding its repayment schedule ensured that global credit markets remained jittery. Moody's has downgraded all six of Dubai's government-related issuers. Investor confidence dropped initially as it became clear that the government was unwilling to step in, and might force the high-profile quasi-sovereign entity to default on its debt.
展开▼
