Dubai is Saved by Kindly Neighbor
If you have a problem, if no one else can help, and if you can find them, maybe you can get a completely unexpected $10 billion bailout from Abu Dhabi.
The BBC report that Dubai will use $4.1bn of the money to rescue government-owned company Dubai World. A bond issued by the company's property development arm, Nakheel was due to pay investors today. And now it will.
As bailouts go it's been pretty effective — the stock exchange in Dubai rose 10 per cent on the news, the one in Abu Dhabi rose seven per cent and shares in banks HSBC, Standard Chartered, Banco Santander, Barclays and Lloyds also went up. It was even good news for the values of the Euro and the Pound. Which tells you something about how much ridiculous investing in ridiculous buildings in Dubai was going on.
Next year, if the recession continues, Dubai apparently plans to follow this 'Christmas miracle' business model.