Middle East Economic Survey


No 9


Abu Dhabi Begins Dubai Rescue Through Bond Purchase

Oil rich emirate Abu Dhabi effectively came to the aid of its indebted neighbor when the Central Bank of the UAE announced on 22 February that it had purchased $10bn worth of bonds issued by the government of Dubai. Dubai became highly leveraged in recent years to fund its rapid growth, particularly in real estate, trade, financial services and tourism, which have formed the mainstay of its...