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Abu Dhabi gives Dubai another loan

Defend Truth

Abu Dhabi gives Dubai another loan

Abu Dhabi has given Dubai another $10 billion handout to help it pay up to $80 billion in debt. This comes after state-owned infrastructure developer, Dubai World, asked for more time to pay some $60 billion of debt coming due over three years. The emirate was ravaged by the global markets bust, with the building of its skyscraper skyline grinding to a dusty halt. The Abu Dhabi cash injection will help the emirate meet its short-term financial commitments. A $3.5 billion payment that is immediately due from Dubai World subsidiary, Nakheel, is in the form of an Islamic bond, which prohibits interest payments. Dubai should be grateful for that, at least. Read more: BBC


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