UAE shows unity

When DubaiÆs economy came close to bankruptcy, a helping hand from Abu Dhabi showed that the UAE is indeed united.

For a few days in February the world lost faith in Dubai. Its credit score rivalled that of Iceland's and speculation focused on what the emirate would look like post-default.

On February 17, the credit default swaps CDS for Dubai's five-year sovereign debt surpassed the 1,000 basis point threshold. Before the economic crisis, Dubai's CDS spread was in the 100bp to 200bp range.

When that happened, bankers and people in the financial system panicked, said a local banker. They realised...

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