Abu Dhabi to give fiscal aid to Dubai

07/04/2011 - Dubai Investment News Posted by Bob Brunskill
Abu Dhabi to give fiscal aid to Dubai

Abu Dhabi is expected to offer more fiscal aid to Dubai to help the emirate refinance its maturing debt, a new report from Barclays Capital has claimed.The capital of the UAE and home to 90 per cent of the country's oil reserves could step in to aid the economic recovery in the state.Citigroup Inc analyst Farouk Soussa recently forecast that Dubai's economy will grow by 3.5 per cent to four per cent this year.The UAE and neighbouring countries are benefiting from oil prices that have risen 19 per cent this year, pushed upwards by conflict in Libya and protests in other Middle Eastern nations."As higher oil prices and production replenishes the coffers in Saudi, Kuwait and UAE … we would not rule out oil-rich Abu Dhabi supporting Dubai in meeting some of its refinancing needs," Alia Moubayed, senior economist for the firm, said.Mr Moubayed noted that the extra money would help to avoid negative headlines and confirm the solidarity of the emirates.