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Will Abu Dhabi always be ready to help Dubai financially?

Will Abu Dhabi always be ready to help Dubai financially?

The results are in.


December 27, 2009 11:24 by

It’s a question investors around the world are asking themselves: Will Abu Dhabi come to Dubai’s rescue every time a debt matures? We don’t have the answer, otherwise we’d leak it to you in a heartbeat.

Local authorities, however, insist the UAE stands united, both in good and bad times. When Abu Dhabi extended a $10 billion bond to the Dubai Financial Support Fund in mid-December to help Dubai World pay its debts, Sheikh Abdullah Bin Zayed al-Nahayan, the UAE’s foreign minister said that it “is proof that the UAE is united politically and economically.”

“It is also proof that UAE remains committed toward local government to deal with effects of the global economic crisis,” he added.

He then said: “The economic crisis in Dubai is over.” It is?

Anyway, while the government is keen on presenting a united front, most self-respecting UAE residents know that although Abu Dhabi is likely to help Dubai, Abu Dhabi seems to be having a good time making its neighbor work hard for money.

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  1. Mishaal on December 27, 2009 12:02 pm

    I really don’t understand why people would even doubt that Abu Dhabi would bailout Dubai. It won’t. However, it will levy tighter restrictions on its previously loose overly expansionist economic policy; and that’s the long and short of it.

  2. Zor Mite on December 30, 2009 9:56 am

    Welcome to Abu Dubai

  3. Abdul Rasheed on March 7, 2010 6:52 am

    I think one should not encourage these kinds of discussions, as knowing Dubai is a part of U A E and the Honorable President is always emphasis this Message in his speeches what valid reasons do we have to discuss all these?


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