Posted by Bob Brunskill
The Dubai government is preparing to issue about $1billion in bonds with maturities of up to seven years amid rising investor confidence in the emirate, it has been reported.
According to the Financial Times, the government is looking to issue the first bond as early as next week, with HSBC, Deutsche Bank and Standard Chartered having been hired to manage the sale.
The news comes after the government-owned Dubai World conglomerate was able to secure the agreement of almost all creditors for a restructuring proposal on $23.5 billion of debt.
Commenting on the bond issue, one unnamed banker told the FT: "This is a big test for Dubai. But the fact they are preparing to go is a very good sign. It shows that Dubai is back as far as many investors are concerned. The restructuring has paved the way for this deal."
Meanwhile, according to Emirates Business 24/7, a recent report by the Kuwaiti-based Global Investment House found that the UAE's real estate sector grew by around 4.3 per cent in current prices last year.