Abu Dhabi has bailed out neighbouring Dubai with $10 billion in surprise aid for debt-laden Dubai World, which said it would use $4.1 billion of it to repay its Nakheel unit's Islamic bond maturing on Monday. Dubai's government held a conference call on Monday to discuss the deal with a government source taking questions.
www.reuters.comAbu Dhabi gives $10 billion to help Dubai World pay debts
Abu Dhabi has given fellow emirate Dubai $10 billion in financing that will be used to pay part of the debt held by state-owned conglomerate Dubai World and its property unit Nakheel.The news sparked a rally in Dubai stocks, which surged over 10% Monday. European stock markets also posted gains, led by banking shares. Equity markets in Hong Kong, Shanghai and Sydney all reversed direction to finish higher following the Dubai news. See full story on Asian stock rebound. See European markets report. Dubai announced Monday that Abu Dhabi's government has provided $10 billion to the Dubai Financial Support Fund. Of the total, $4.1 billion will be used to repay Nakheel's Islamic bond maturing Monday, while the rest will be used to finance Dubai World's obligations through the end of April 2010.
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