Country cancels Iraq's debt

DUBAI, United Arab Emirates (CNN) - Iraqi Prime Minister Nuri al-Maliki announced Sunday that Dubai has forgiven the nearly $7 billion owed it by Baghdad and has agreed to re-establish diplomatic relations with Baghdad and to help Iraq rebuild shrines damaged or destroyed in recent fighting.

In a written statement, al-Maliki said UAE President Sheikh Khalifa bin Zayed Al Nahyan promised to "put out these debts," appoint an ambassador to Baghdad, and "help Iraq building the holy shrines that were targeted by the terrorists."

The announcement came after al-Maliki and the sheikh met Sunday, the first day of a two-day official visit. Al-Maliki was accompanied by the Iraqi ministers of Interior, Commerce and Industry.