Bond market needs tonic after Dubai shock

* username: rupertbu

Last year was one to remember for investors in the Gulf’s small but swelling credit markets – for good and bad reasons.

Bond issuance almost quadrupled to a record $41bn, from $11bn in 2008 and the previous peak of $27bn in 2007, according to Dealogic, capped by Qatar’s blockbuster $7bn debt sale in mid-November.

However, Dubai’s unexpected decision to restructure the debts of its troubled Dubai World conglomerate later in November sapped the credit markets of their early-2009 vim, and sent prices tumbling.