Important Injection for Recovery of the Dubai Real Estate

Abu Dhabi already made a $10 billion loan to troubled DubaiIn late March 2010, the New York Times reported another important injection of cash will help in the restoration and recovery of the Dubai real estate market. The emirate of Abu Dhabi already made a $10 billion loan to troubled Dubai, and now the Dubai emirate (government) has committed up to $9.5 billion in capital to Dubai World. The Dubai government’s loan commitment is an important factor in lessening the number of write-downs from external investors.

This comes only a little more than four months since the Dubai government announced a delay in Dubai World’s interest payments (on $23 billion debt) to creditors, resulting in panic in the Dubai real estate market.