Headline Alert
Market Mover: Abu Dhabi Bails Out Dubai
Oil rich member of the United Arab Emirates, Abu Dhabi has announced it will provide Dubai with a $10 billion cash injection to help cover short-term debt obligations.
The first $4.1 billion will be allocated to Dubai World to pay immediate obligations of Nakheel sukuk that are due today.
"The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World," the chairman of the Dubai Supreme Fiscal Committee said in a statement.
Unlike Dubai, which has no oil interests, Abu Dhabi is a large oil exporter and the biggest member of the U.A.E.
"We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices," Sheikh Ahmed bin Saaed al-Maktoum said in the statement.
Want to receive all the important market headlines?
Click Here to Sign Up for FLASH Headline Alerts
S&P 500 - Intraday
S&P 500 - Last 3 Months
S&P 500 - Last 12 Months
S&P 500 - Last 3 Years
