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Economy

Abu Dhabi to extend bailout loan to Dubai

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Analysts expect Abu Dhabi government to rollover the debt that it extended to Dubai in 2009.

Wednesday 06, February 2019 BY KUDAKWASHE MUZORIWA

Abu Dhabi is expected to rollover for the second time $20 billion worth of debt, due next month, that it extended to Dubai during its financial crisis a decade ago, according to newswire, Reuters.

The rollover includes a $10 billion five-year loan that the Abu Dhabi government offered to Dubai through two state-owned banks and $10 billion of five-year bonds that Dubai issued to CBUAE.

Dubai received the aid from Abu Dhabi in 2009 after the global credit crisis caused its real estate market to crash, threatening to force some state-linked companies to default on billions of dollars of debt.

The rollover comes amid a prolonged weakness in Dubai’s real estate market, which together with an outflow of funds to Saudi Arabia led to a slump in equity markets last year.

TAGS : Abu Dhabi, Dubai, Oil, Real estate, Tourism

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