Dubai's government has received $10 billion from its neighbor Abu Dhabi  which are known to be rich in oil, the amount will help pay debts owed by the struggling Dubai World conglomerate.  It has been said that the deadline to repay a pile of debt from its Nakheel property division will be on Monday. The bailout money amounted to $4.1 billion of the will be used to pay off those bills.

Dubai's government 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," Sheik Ahmed bin Saeed Al Maktoum, chairman of the Dubai supreme fiscal committee, said in a statement.

"Our best days are yet to come." Accordingly the key test of the emirate's creditworthiness is its ability to repay what was it owed from  existing trade creditors and contractors. However, some of the funds will be used to apportion Dubai Worl's interest expenses and other business. It was also added, the United Arab Emirates' central bank, based in the federation's capital, Abu Dhabi, is prepared to provide support to local banks.

Add to tagza.com