Abu Dhabi Won't Let Dubai Default on Debt, Knox Says

According to Abu Dhabi Commercial Bank CEO Eirvin Knox, Abu Dhabi won't allow Dubai's state-owned companies to default on debt payments as the global banking crisis limits their access to funds, Bloomberg reported yesterday. Dubai may need help from Abu Dhabi and the United Arab Emirates government to finance a surge in borrowing that paid for the world's tallest tower, palm tree-shaped man-made islands and stakes in banks worldwide, Moody's Investors Service said in a report last month. Abu Dhabi Investment Authority is the world's largest sovereign wealth fund with assets of between $250 billion and 850 billion, according to the International Monetary Fund. The emirate owns more than 90 percent of the U.A.E.'s oil reserves, nearly 8 percent of the world's proven total. Read more.