Tuesday, 29 October 2013

Expo 2020 success for Dubai could trigger bond market bonanza | The National

Expo 2020 success for Dubai could trigger bond market bonanza | The National:

"There could be a flurry of high-yielding debt sales on local bond markets if Dubai is successful in its bid to host World Expo 2020, analysts say.

Spending on new projects such as hotels needed to cope with the influx of visitors to the exhibition will probably require the issuance of new higher-yielding bonds, analysts said.

Bonds and sukuk of property developers such as Emaar Properties have rebounded this year amid improving economic fortunes for the UAE. Demand for real estate from investors in countries torn by violence in the region such as Egypt and Syria, as well as local demand, have boosted home values. Dubai has estimated that it would need to invest about $7 billion in infrastructure projects. Its existing debt load is more than 100 per cent of its GDP."

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