Dubai bailout may come from rich neighbor Abu Dhabi


As banks and global analysts try to parse the Dubai debt problem by examining who owes what to whom, the most likely candidate to bailout the Arab emirate, its wealthy neighbor Abu Dhabi, has said it may help on a case-by-case basis.

In an exclusive interview with Reuters, a government official in Abu Dhabi said the UAE capital will "pick and choose" how to assist its debt-laden neighbor Dubai. That means that the exposure some large global banks have may not be part of any assistance package from other Arab neighbors, and that potential problems with write-offs may still exist.