Dubai, Dec 14: Dubai’s government says it has received $10 billion in emergency funds from oil-rich neighbour Abu Dhabi that will go toward paying debts owed by its struggling Dubai World conglomerate.
Some $4.1 billion of the money will be used to pay off a pile of debt from Dubai World’s Nakheel property division that comes due on Monday.
Dubai’s ability to repay those funds had been seen as a key test of the debt—laden emirate’s creditworthiness.
The UAE central bank, based in the federation’s capital Abu Dhabi, also says it is prepared to provide support to local banks.
–Agencies