Shares in troubled Abu Dhabi developer Aldar Properties sank to a record low this week, but increasing bids for the company's bonds show investors are starting to see value in its debt.
They are hoping that indirect involvement in the company by the Abu Dhabi government will reduce the risk of any payment delays on its bonds and strengthen its credit portfolio -- illustrating how in the Gulf, government connections, even implicit ones, can be crucial for investor perceptions.
The stock price plunged to an all-time low of 0.96 dirham on Tuesday, down more than 90 percent from its 2008 peak and well below this year's high of 2.48 dirhams, as the real estate sector in the United Arab Emirates continues to suffer from oversupply and falling prices.
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