Dubai Sukuk Wins Investor Confidence as Debt Accord Nears: Islamic Finance - Bloomberg: "Islamic bonds in Dubai are set to extend this year’s rally as Dubai World predicted it will complete debt restructuring in the “coming months,” said Unicorn Investment Bank BSC and Emirates NBD Asset Management.
The average yield on securities that comply with religious principles sold by Gulf Cooperation Council borrowers dropped four basis points to 7.17 percent on July 23, a day after Dubai World announced the estimated timeframe for renegotiating its debt, according to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index. The rate reached 8.76 percent on Dec. 11 after Dubai investment companies announced plans to reschedule its obligations in November.
“Most sukuk investors have exposure to Dubai World, so they’re obviously reacting in a positive way,” Nida Raza, senior vice president of capital markets at Bahrain-based Unicorn, said in a telephone interview on July 22 in Manama. “People who were staying away from Dubai government bonds -- both conventional and Islamic -- are going to start buying more and more of it.”"
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