Abu Dhabi announces $10 billion bailout for Dubai; Markets Strong
Dubai gets unexpected helping hand from Abu Dhabi as it has announced a surprise bailout of $10 billion aimed to help state-owned conglomerate Dubai World for meeting its financial obligations.
Dubai World, caught in a multibillion dollar debt crisis recently, caused plunge in stock markets across the world besides creating ripples of uncertainties in the financial world.
The Chairman of the Dubai Supreme Fiscal Committee informed, "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 move by Abu Dhabi, the largest member of the United Arab Emirates federation and a big oil exporter, would help manage a series of upcoming obligations on Dubai World. Meanwhile, the news has caused fluctuations in different currencies with yen declined sharply against and euro to 88.90 yen and 130.43 yen respectively.
Sheikh Ahmed bin Saaed al-Maktoum said, "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."
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