Abu Dhabi Throws Dubai $10 Billion Lifeline
Christopher Weber
Correspondent
Posted:
12/14/09
Financially-strapped Dubai got a last-minute $10 billion loan from neighbor Abu Dhabi Monday to bail out a government-owned company that had run up massive debt and was on the verge of collapse.
The conglomerate Dubai World was up against a Monday deadline to repay loans from its property division. At least $4.1 billion of the Abu Dhabi money will be used to balance its books and the rest will go toward keeping Dubai World financially secure in the future, the Washington Post reported.
News of the loan sent Dubai's main stock market up more than 10 percent. Analysts hope the move will calm fears across the oil-rich region and restore international confidence in Dubai and the United Arab Emirates as a whole.
The conglomerate Dubai World was up against a Monday deadline to repay loans from its property division. At least $4.1 billion of the Abu Dhabi money will be used to balance its books and the rest will go toward keeping Dubai World financially secure in the future, the Washington Post reported.
News of the loan sent Dubai's main stock market up more than 10 percent. Analysts hope the move will calm fears across the oil-rich region and restore international confidence in Dubai and the United Arab Emirates as a whole.