Abu Dhabi gives Dubai £6.1 Billion
Posted on 9:58am Tuesday 15th Dec 2009
Abu Dhabi yesterday gave Dubai a lifeline.
The bailout follows last month's news that the state owned investment conglomerate Dubai World could not repay its debts.
Many people will know that the seven star hotels and artificial islands as the symbol of Dubai's fame and wealth.
Las Vegas is known for its casinos and Dubai for its opulence.
Dubai World last month asked for a standstill on debt sending financial markets into panic mode.
After the Abu Dhabi $10 Billion payment, global stock markets soared.
The funds will cover a $4.1 Billion Islamic bond on Dubai World property unit Nakheel was due to pay yesterday.
Nakheel, the developer behind The Palm and The World developments off the Dubai coast , has accumulated huge debts during a five - year property boom in Dubai.
Despite the money paid, this might only last until April 2010. Dubai World could still collapse if it cannot negotiate an agreement with its creditors on the rest of its debts.
Can the Dubai government continue to provide the necessary financial support to cover working capital and interest expenses to ensure the continuity of key money intensive projects is the question going into May of 2010?