Dubai's opaque bond plan leaves investors wary

Foreign investors are unlikely to tap into a $10 billion (six billion pounds) Dubai bond unless officials give details such as whether it has federal backing, raising the prospect the central government may intervene again to support the emirate.

Dubai, one of the seven United Arab Emirates, propelled itself into the spotlight as a tourism hub during a six-year oil-fuelled boom, but the downturn rocked its foundations based on excess lending and a transient expatriate population.

The UAE's central bank took up the first tranche of a $20 billion bond issue in February and Dubai's new finance chief announced last week that the second tranche would be open to local and foreign investors.

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