Dubai’s debt crisis is over, according to the foreign minister of the United Arab Emirates (UAE).
Abu Dhabi’s $10 billion bailout of its struggling neighbour was proof of national unity, said Sheikh Abdullah Bin Zayed Al Nahayan, reports The Times.
His words come as Dubai officials conduct a whirlwind world tour to try and reassure jittery markets that the worst is over.
Sheikh Ahmed bin Saeed Al Maktoum, deputy chairman of the Dubai Executive Council, and Mohammed Ibrahim Al Shaibani, chief executive of the Investment Corporation of Dubai, are meeting with US Treasury Secretary Timothy Geithner in Washington today.
Yesterday (Thursday), they were in London meeting with investors to iron out any ongoing concerns about the country’s debt, which is conservatively estimated at $80bn.
At one point it was feared that Dubai may be forced to sell one of its prize assets Emirates Airline in order to secure the bailout from Abu Dhabi.
The state-owned Dubai World conglomerate request for a six-month delay on $26 billion of debt repayments rocked the world’s financial markets late last month.
Frightened investors feared it could mark the start of another global slide into recession.
The crisis was only halted this week when Abu Dhabi stepped in with $10 billion to cover Dubai World’s immediate debts.
Dubai World is currently in talks with its banks to restructure the business, with a number of key assets at home and abroad likely to be sold off to meet the group’s debts.
Dubai’s ruler Sheikh Mohammed Bin Rashed Al Maktoum has issued new laws to provide greater transparency about government-owned companies’ resources and spending.