Dubai Faces Credit Test As $1B Aviation Sukuk Deadline Looms

Dubai faces another crucial test of its credit worthiness with the maturity in November of a $1 billion sovereign sukuk, or Islamic bond, issued by Dubai Civil Aviation Authority, bankers say.

The bond, or Dubai Global Sukuk, matures on Nov. 4, according to Zawya.com's Sukuk Monitor service.

Bankers are concerned by a lack of guidance from Dubai on the sukuk, which matures a month ahead of a $3.5 billion Islamic bond issued by Dubai World's Nakheel. Repaying the Nakheel sukuk is seen as a key test of Dubai's ability to meet its immediate debt obligations.