Investors give Dubai a Boost
Nov 21st, 2009 | By co | Category: BusinessUnfolding efforts by Dubai to restructure its corporate holdings and manage an estimated US$85 billion (Dh312.2bn) in debt appear to be winning the confidence of investors, judging from prices for the emirate’s bonds. Dubai Government bonds, which have been rising steadily since last month, continued to climb after news that the Government-owned conglomerate Dubai World had shifted assets and executives from the developer Nakheel to its investment arm, Istithmar World.
The moves sent yields on Dubai’s sovereign bonds to their lowest point this year and pushed the cost of insuring Dubai’s debt down to its lowest since this time last year. To some extent, Dubai is benefiting from surging investor interest in emerging-market assets around the world.
Signs of a global economic recovery and concerns about the health of the US dollar have triggered a wave of investment back into the furthest corners of the globe. The improving performance of Dubai’s debt also appears to indicate ebbing investor concern about the ability of the Government and the companies it controls to service debts racked up during the boom that ended with the global financial crisis.
