Abu Dhabi Won't Bail Out Dubai With Blank Check

Investors who hoped that oil-rich Abu Dhabi would write a blank check to cover the massive debts of Dubai—its flashier UAE sister city—got some bad news today. The capital city will instead "pick and choose" where to help. "We will look at Dubai's commitments and approach them on a case-by-case basis," a government official told Reuters. "It does not mean that Abu Dhabi will underwrite all of their debts."

Dubai set off tremors in world markets this week when it announced it would delay payment on $60 billion in debt. "Some of Dubai's entities are commercial, semi-government ones," said the Abu Dhabi official, whose government provided $15 billion in immediate relief through the central bank of the United Arab Emirates. No more is coming "until things become clearer. ... Many things have to be clarified by Dubai." (More Dubai stories.)