Abu Dhabi gives Dubai $10 bln bailout
In a surprise move oil rich Abu Dhabi has bailed out Dubai with $10 billion. The terms of the funding are not being released but the funding relates to Dubai’s flagship investment company Dubai World. Dubai World manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading.
Dubai is now rushing to reform its bankrupcy laws in the event that Dubai World needs protection from its creditors.
I find it very interesting how quickly the fate of flashy Dubai have turned so fast. A large amount of Dubai’s growth has been funded by cheap cash which has now dried up so there is certainly changes ahead.
This is the Blog of an Accountant based in Galway providing Bookkeeping services and accountancy software
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