Investors give Dubai a boost

Unfolding 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 last week 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.