The US$10 billion (Dh36.73bn) in financial assistance to Dubai announced last month by Abu Dhabi includes $5bn committed in November by two Abu Dhabi-controlled banks, Dubai said yesterday.
Dubai announced in mid-December that Abu Dhabi would lend it $10bn to help prevent cash-strapped companies controlled by the Dubai Government, notably Dubai World, stay afloat after the financial crisis impacted their ability to keep up with debts accumulated during the property boom.
Until now, it had been unclear as to whether the $10bn, which Abu Dhabi will use to buy Dubai bonds, represented an entirely new commitment or whether it included $5bn in bond purchases announced on November 25 by two banks controlled by Abu Dhabi – Al Hilal Bank and the National Bank of Abu Dhabi (NBAD). They have already disbursed as much as $1bn of those funds.
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