Dubai gets $10 billion from Abu Dhabi to pay debts

dubai-gets-money-from-abu-dhabi

The government of Dubai has been given a $10 billion handout from neighboring oil-rich emirate Abu Dhabi to help meet its short-term financial commitments.

The surprise move means Dubai can now repay a $4.1 billion Islamic bond that is due today.

“The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World,” Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said in a statement.

Dubai has been badly hit by the global recession.

Watch Al Jazeera’s report below: