Posted by Neil King
The growth of Dubai bond issues in the fourth quarter of last year boosted the debt market in the Gulf Cooperation Council (GCC), a Saudi investment company has said.
NCB Capital, an affiliate of the Saudi National Commercial Bank, said that after a downturn in previous quarters caused by the global fiscal crisis, the debt markets in the GCC began to rebound towards the end of last year thanks to conventional issuance by UAE and Qatari sovereigns, Emirates Business 24/7 reported.
According to the company, new bond and sukuk (Islamic bond) issues of $36.4 billion in the final quarter effectively doubled the figure for the year to over $73.2 billion.
NCB noted that bond issuances were managed by the Dubai Financial Support Fund, which was established with the aim of providing liquidity to government and government-related entities.
In addition, the firm said that Dubai's $1.3 billion 20-year sukuk was the largest sukuk issuance in the fourth quarter within the GCC.
This month, a survey by GRMC Advisory Services revealed that confidence in property investment in Dubai remains stable despite the economic climate.