The window for Dubai to climb back into the global credit markets is open, but it is may not be open very wide for very long.
Dubai managed to sell slightly more than US$1.9 billion (Dh6.97bn) in Islamic bonds, or sukuk, yesterday, drawing a surplus of orders by offering investors a risk premium to help it re-enter the bond market for the first time in more than a year.
The sukuk are part of a new, $6.5bn bond programme designed to help Dubai refinance an estimated $85bn in debt owed by the Government and the companies it controls. The new bonds come on top of $10bn Dubai has already borrowed from the Central Bank and another $10bn it hopes to borrow before the end of the year.
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