Dubai’s decline into financial crisis has been more spectacular than its rise.
Until a month ago, the official word from Dubai was that the emirate’s finances were in good order, but in late November world markets fell on news that the Dubai World conglomerate was unable to service $26bn in debts.
Now Abu Dhabi has given Dubai $10bn, some of which will enable the property arm of Dubai World to pay a $4.1bn Islamic bond that has matured.
Abu Dhabi’s rescue package has highlighted the differences between its cautious approach to investment and Dubai’s more brash attitude.
Tarek Bazley reports.