The United Arab Emirates on Sunday stepped in to shore up its banks and head off any potential capital flight as the nation’s federal authorities attempted to counter concerns over Dubai’s debt problems.
The UAE central bank set up an emergency liquidity facility to ease fears about its banking system, but investors remained nervous about the short-term impact on local markets as regional traders digested the global sell-off caused by the announcement that one of Dubai’s flagship entities – Dubai World – was seeking a standstill deal with creditors until May.
