Abu Dhabi to help on case-by-case basis

Dubais crisis exploded on Wednesday when the emirate,known for flashy lifestyles and the worlds tallest building,said it would delay payment on debt issued by one of its flagship firms,angering investors and sending global markets sharply lower.

Selective assistance for companies in Dubai Inc,a network of quasi-sovereign industries,instead of blanket assistance,would serve a rude awakening to investors who for years assumed that the conservative Abu Dhabi provided a safety net for its racier neighbor. Some of Dubais entities are commercial,semi-government ones. Abu Dhabi will pick and choose when and where to assist, said the official,who declined to be identified because he is not authorised to speak to the media.

India,which receives 10-12 per cent of its worker remittances from the UAE,said on Saturday it would keep a close watch on the situation in Dubai but did not expect much impact on it. In the Gulf itself,details of local banks exposure to Dubai have begun to emerge.

Abu Dhabi,which pumps 90 per cent of the oil that make the United Arab Emirates the worlds third-largest oil exporter,has already provided 15 billion in indirect support for Dubai through the UAE central bank and two private Abu Dhabi banks. How much more support the emirate provides for its cash-strapped neighbor,however,will depend on how Dubai clarifies its stand on unresolved issues.