Abu Dhabi has reversed its stance on Dubai debt and provided $10bn to help state-owned holding company Dubai World meet its obligations, including $4.1bn needed to repay an Islamic bond maturing today for the property company Nakheel.

Dubai will use the rest of the money to make payments to Dubai World’s contractors, suppliers, interest and operating costs until the company reaches a standstill agreement with its creditors, Dubai’s government said in an e-mailed statement today.

'This support provides funding and a stable basis for the restructuring process, which continues,' Dubai World said in a separate e-mailed statement.

(From bloomberg.com)