Dubai Faces Curb on Money-Hub Ambitions After Bailout
A $10 billion bailout from neighbor Abu Dhabi threatens to cost Dubai its autonomy and the free- wheeling economic system that helped establish it as the Middle East’s main business hub.
The financial help comes as the sheikhdom, one of seven within the United Arab Emirates along with Abu Dhabi, is struggling with damage to its international reputation after an Israeli tennis player was refused a visa for the Barclays Dubai Tennis Championships it hosts.
Abu Dhabi, which pumps more than 90 percent of the U.A.E.’s oil and has long objected to its neighbor’s debt-fueled expansion, has the means to rein in Dubai. The smaller emirate accumulated $80 billion in debt to build real estate projects, including the world’s tallest building, while Abu Dhabi amassed one of the world’s largest sovereign wealth funds.