According to The Times, Abu Dhabi is demanding control of Emirates in return for a multi billion dollar bailout:
"The emirate, which is ruled by the Al Maktoum family, has been hit hard by the credit crunch. Its property market, in which many of the big players are state-owned or backed, has enjoyed explosive growth over the last decade but prices are now tumbling, leaving heavily indebted developers badly exposed.
"Government sources in Dubai confirmed last week that talks had begun with Abu Dhabi, which has huge oil and gas reserves, about funding. Rather than ploughing cash into the Dubai state, Abu Dhabi has offered to invest in its neighbour’s strategic assets.
"The airline alone is estimated to be worth about £10 billion and selling a stake in it could generate enough cash to prop up much of Dubai’s economy."
Etihad already bills itself as "the national airline of the UAE".
The Sunday Times and times online
No comments:
Post a Comment