A $1.25 billion bond issue by Dubai this week underlined the spectacular recovery of the emirate's reputation since its debt crisis. But some investors are wondering whether the world is once again getting a little too optimistic about Dubai.
The flamboyant emirate attracted over $9 billion in bids for a $750 million, 10-year sukuk (Islamic bond) on Tuesday, paying little more than 1 percentage point above what gas-rich Qatar would have paid to issue debt.
Demand for Dubai's debt was so strong that it in addition to the sukuk, it unexpectedly sold a $500 million, 30-year conventional bond at the request of investors.
MIDEAST DEBT-Dubai defies doubters with bond issue success | Reuters
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