In a statement Dubai government officials said, "The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World. As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today."
In November, Dubai World asked its creditors for a six months extension on all maturing loans. At the time it had roughly $26 billion of debt from Nakheel. Dubai World officials are still asking for the extension with plans to use the remaining Abu Dhabi capital infusion "for interest expenses and company working capital."
Dubai World, through its development arm, has a number of high-profile projects in the works. The company is developing the mixed-use palm-shaped island. It also had plans to build the world's tallest building, but those plans were put on hold in January as the world financial crisis worsened. At the time Dubai World planned to take a year-long hiatus from the project. Now its future is uncertain.
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