DUBAI: Abu Dhabi's US$10 billion (RM34.1 billion) financial aid to Dubai to meet debt obligations was in the form of bonds, the UAE foreign minister said in remarks to the Jordanian state news agency.
Abu Dhabi provided Dubai, a fellow member of the United Arab Emirates, with the lifeline on Monday, when a US$4.1 billion Islamic bond issued by Dubai property developer Nakheel fell due. The loan boosted markets by easing concerns about a potential debt default.
"The aid did not come late and was in the form of bonds," Sheikh Abdullah bin Zayed al-Nahayan told the agency, Petra on Tuesday, on the sidelines of a Gulf Arab summit in Kuwait.
"They are debt instruments that would be paid back and carry interest just like loans."
Sheikh Abdullah expressed "optimism about the capability of Dubai to reach satisfactory solutions with its creditors — international banks", Petra said.
"Those who question the solidarity of the seven (UAE) emirates do not know the truth of the federation," he said.
Dubai said on Nov 25 that it had requested a standstill on US$26 billion of debt owed by state-owned conglomerate Dubai World, the owner of Nakheel, raising concerns about the health of the UAE economy and the support Dubai had from Abu Dhabi.
The lifeline helped Dubai World repay the property unit's bond.
The move answered doubts about the strength of the union and the dynamics of support that Abu Dhabi has traditionally extended to fellow federation members.
Dubai, a regional business and tourism hub, is the second largest member of the UAE, the world's third-largest oil exporter.
The rest of the funds will be used to support Dubai World until the end of April. With the bond repayment out of the way, Dubai World must now agree a standstill with creditors to give it time to restructure. If it fails to reach an agreement, it may file for bankruptcy protection. — Reuters
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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