A second life

摘要

Dubal's international film festival, which concluded this week, was graced by a rare local offering called "City of Life". But nothing could compete with the home-grown cliffhanger unfolding in the emirate's debt markets. On December 14th Dubai's neighbour, Abu Dhabi, stepped in at the last moment to rescue its indebted sibling from the brink of default. It provided $10 billion to Dubai's government, more than enough to repay the $4.1 billion due the same day to holders of a sukuk, or Islamic bond, issued by Nak-heel, a prominent developer. The firm belongs to Dubai World, a holding companyrnowned by the Dubai government, which less than three weeks earlier had requested a standstill on repayments of $26 billion of debt, panicking global markets.