According to this person, who was not authorized to speak for the record, the intensive talks about the true nature of Dubai’s debt problems broke ground in communication and disclosure between the emirates  a sign that from here on, Abu Dhabi will impose a much higher level of scrutiny and supervision over Dubai’s decisions, financial and otherwise.

Image Investors watched share prices Monday in Dubai, United Arab Emirates. The markets cheered Abu Dhabi's lifeline to Dubai. Credit... Charles Crowell/Bloomberg News

Blood ties also served their purpose. Not only are the rulers of Dubai and Abu Dhabi descendants of the Bani Yas tribe that first settled the lonely stretch of desert in the 18th century, they are also joined by marriage. The daughter of Sheik Mohammed of Dubai recently married Sheik Mansour bin Zayed al-Nahyan, the half brother of Sheik Khalifa and a member of the federal cabinet.

It became clear that what had started as a negotiating ploy by Dubai World with its creditors had become a compounding crisis that threatened the global credibility of not only Dubai, but the United Arab Emirates itself. Therefore, decisive action was taken.

Dubai World’s standstill created even more of an uproar when a group of foreign hedge funds that had recently become large holders of the bonds of Nakheel, Dubai World’s troubled real estate venture, threatened to drive Dubai World into default by rejecting its proposal to delay interest payments.

While there have always been tensions between the expansionist Dubai and more conservative Abu Dhabi, the prospect of foreign investors laying claim to some of the United Arab Emirates’ most valuable properties, like Dubai’s port operations, seems to have been justification enough for Abu Dhabi to step in.

According to a statement released on Monday by Dubai, the $10 billion was to be used to cover the $4.1 billion owed to the Nakheel bondholders  due on Monday  as well as to provide money for the company to pay its creditors through April 2010 on the condition that the standstill agreement was accepted.