UAE aids Dubai with $10bn bond purchase

The Central Bank of the United Arab Emirates has acted on fears that Dubai will not be able to repay its debt by buying $10 billion-worth of the emirate's bonds.

The central bank fully subscribed to the first tranche of the issue of the Dubai government's new $20 billion bond programme launched on Sunday. The central bank got involved amid concerns that the emirate will not be able to repay its debt as global financial turmoil has made credit more expensive and burst Dubai's real-estate bubbl