Dubai World gives debt markets a boost

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Dubai World’s debt restructuring proposals have provided an important fillip for regional debt markets, which had gummed up following the conglomerate’s shock announcement of a standstill in November.

The proposals included a promise to pay back property developer Nakheel’s Islamic bonds fully and on time – provided creditors agree to the plan. This move sparked a rally in the Gulf’s credit markets.

The extent of the improvement in sentiment will now be tested by Dewa, Dubai’s utility provider, which is in the midst of an investor roadshow to assess whether it can revisit its $3bn bond programme.