From Times Online
November 28, 2009
By Rhys Blakely in Dubai
Abu Dhabi is poised to come to the aid of Dubai’s debt stricken-businesses, but only on a “case by case” basis, senior bankers an officials said today.
The Dubai Government sent global markets into a tailspin this week after it asked creditors of Dubai World, the state-owned conglomerate behind the city state’s building boom, for a six-month standstill on $80 billion of debt repayments.
The move kindled fears that the world economy is yet to rid itself of toxic debt, and may even succumb to a fresh downturn in a “double dip” recession.
Oil rich Abu Dhabi, which has the world’s largest sovereign wealth funds, thought to be worth as much as $700 billion, could easily bail out Dubai, but is thought to be unwilling to pour more money into its neighbour’s beleaguered property sector, which has buckled under the weight of a series of half-finished grand projects. Continue reading “Abu Dhabi poised to throw lifeline to Dubai”