Investors have been dumping Middle Eastern bonds in recent weeks, thrusting the local fixed-income market into the headlines. A scan of the most-read stories on UAE Bloomberg terminals revealed just two Middle East business stories in past week's top 10. Both were about bonds.
The articles were referring to the sell-off in sukuk issued by Dar Al-Arkan, a Saudi property company. And the selling of bonds issued by organisations in Dubai, particularly government-related entities such as Dubai Holding Commercial Operations and Dubai International Financial Centre Investments (DIFCI).
Sellers of course fear the European debt crisis could cause a second credit crunch. A global financial crisis would make it tough to roll over bonds that mature in the next year or two. All valid concerns.
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