Abu Dhabi cheered markets yesterday by extending a $10bn bail-out to Dubai, enabling its fellow emirate to avoid an embarrassing slide into default by troubled state-owned property developer Nakheel.
The move by the oil-rich capital of the United Arab Emirates ended three weeks of market turmoil following Dubai's request to freeze payments on $26bn in debt held by state-owned conglomerate Dubai World, Nakheel's parent.
But analysts warned that concerns remained about the conglomerate's restructuring and other parts of the emirate's commercial empire.
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