A Miracle in the Desert: Abu Dhabi Bails Out Dubai


Just as it looked like Dubai might go into a default on some of its debts and have to complete a $26 billion restructuring with bondholders, neighbor nation Abu Dhabi has provided billions in much-needed financing. The move has spurred stock market rallies around the world.

Abu Dhabi put $10 billion into state-owned Dubai World and its real estate arm. Dubai's property development firm, Nakheel, will use about $4 billion of the capital to pay off bonds due this week. The balance will be used to help Dubai World restructure its debt.
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