Dubai in Talks With Banks for Potential Islamic Bond Sale


20/04/2017 13:01 AST

Dubai is in talks with banks for a possible Islamic bond sale, people familiar with the matter said, as it considers joining its Gulf neighbors in using public markets to fund a budget deficit.

The emirate is also looking at other fundraising options, including a conventional bond sale, loan or private placement, the people said, asking not to be identified because the information is private. An Islamic bond, or sukuk, sale is the most likely option, the people said. A final decision hasn’t been made and the government may decide not to tap the market if conditions aren’t favorable.

Dubai is considering raising debt to help finance a budget deficit that may reach $680 million this year. Although the emirate’s economy relies mainly on tourism, retail and logistics rather than oil, it’s also been hit by a drop in energy prices. Dubai last sold a $750 million sukuk in 2014 and has a $600 million Islamic bond maturing in May, according to data compiled by Bloomberg.

The government is likely to come to the market soon once a final decision on the financing plans is made, and may raise as much as $1 billion in debt this year, the people said. No one at Dubai’s Department of Finance was available for comment.

Governments across the six-nation Gulf Cooperation Council are tapping capital markets after the price of oil, the region’s main source of income, slumped by more than half since 2014. Saudi Arabia raised $9 billion in its first dollar-denominated Islamic bond sale this month after selling a $17.5 billion bond in October, the biggest ever from an emerging-market nation. Qatar, Abu Dhabi, Oman and Bahrain have also raised billions of dollars from bond sales over the past year.

Bloomberg
Economic and Business News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
GFH 0.49 1,642,170
QNBK 133.5 133,285
SABIC 98.2 249,279
AMLAK 1.07 4,593,610
AIRARABIA 1.13 3,611,365
DSI 0.37 10,758,890
BKMB 0.37 624,000
Recent News

Drake & Scull to proceed with Fairmont Abu Dhabi MEP works
Drake & Scull International (DSI), a regional market leader in engineering and related services, has announced that it will proceed with the mechanical, electrical and plumbing (MEP) works for the Fa

$32bn worth urban projects 'at tendering stage in GCC'
As many as 801 construction projects with a combined estimated value of Dh117.44 billion ($32 billion) are currently in the tendering stage in the GCC's urban construction sector, according to a repo

Engie completes $762m investment in Tabreed
The National Central Cooling Company (Tabreed) has announced the successful completion of an investment of approximately Dh2.8 billion ($762.32 million) by Engie, a global energy company, to acquire

UAE Central Bank deposits top $33 billion in H1
The total value of monetary deposits at the UAE Central Bank amounted to Dh123 billion ($33.5 billion) during the first half (H1) of the year, Dh122.95 billion of which are in banknotes and Dh50 mill

Qatar sovereign wealth fund trims Credit Suisse stake
The Qatar Investment Authority has reduced its shareholding in Credit Suisse Group to 4.94 percent, amid the Middle Eastern nation’s diplomatic crisis with neighbouring countries.

The coun

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?