Since the financial crisis struck, Dubai officials have been telling the world that the emirate will extricate itself from an $80bn debt hole it has dug itself during the global credit binge.
But as the markets on Monday jubilantly toasted an in effect, loan of $10bn (£6.9bn, €7.8bn) from the Central Bank of the United Arab Emirates, it became clear that Dubai – like other countries around the world – had finally come to terms with the harsh economic realities at home and it accepted a federal bail-out.
As the emirate’s six-year property boom turned to bust late last year and the world’s economic downturn harmed every sector on which Dubai’s prospects depend, investors had grown increasingly sceptical of the city-state’s ability to refinance its debt, sending insurance against a default on Dubai’s debt to levels similar to Iceland.
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