(PTI): Abu Dhabi has started to bailout fellow UAE member Dubai by spending $10bn, of which $4.1bn has been allocated to state conglomerate Dubai World to meet urgent obligations.

Nakheel, the property development arm of Dubai World, known as Dubai’s main investment vehicle, is to pay investors in an Islamic bond due to mature on Monday.

The once-highflying emirate of Dubai can use the remaining bailout funds to pay for interest and working capital expenses through April 30, so long as Dubai can negotiate a standstill on maturities of its other debts until May 30.

Reuters say international banks’ exposure related to Dubai World could reach 12 billion dollars.

Dubai government said in a statement Sunday it would issue $20bn in long-term bonds.

“We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices,” the statement said.

Global stock markets fell sharply in late November, after reports spread that Dubai World was not able to repay its debts on time.

The Dubai and Abu Dhabi stock indexes plunged once again last week after Bloomberg released a document, which showed that Nakheel, the Dubai World-owned property developer, had lost 13.4 billion dirhams ($3.65 billion) in the first half of the year.

It is not known if the bailout will be enough to stop Dubai from turning into a cityscape of half-finished constructions.