Abu Dhabi, the capital of the United Arab Emirates and home to 90 percent of the country’s oil reserves, might offer more fiscal aid to sister state Dubai to help refinance maturing debt, Barclays Capital said.
“As higher oil prices and production replenishes the coffers in Saudi, Kuwait and UAE on improving fiscal and external balances, we would not rule out oil-rich Abu Dhabi supporting Dubai in meeting some of its refinancing needs to avoid negative headlines and confirm its solidarity with other emirates,” Alia Moubayed, London-based senior economist for the firm, said in a research report Wednesday.
Abu Dhabi agreed a $20bn deal with Dubai after Dubai World, the state-owned holding company, roiled global markets by seeking to alter terms on about $25bn of debt following the 2008 property crash.
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