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.
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