Middle East
Capital markets, Featured Work, Islamic Finance, Middle East - Monday, December 21, 2009 14:54 - 0 Comments
Dubai ducks default – a relief but an opportunity missed
Asiamoney, December 2009
Dubai went to the brink – and it’s still there. Abu Dhabi’s decision in December to supply Dubai with $10 billion for debt repayment allowed it to forestall, at the very last moment, a default 
on the world’s largest ever sukuk – the $3.52 billion Nakheel Developments issue which matured on December 14. But it doesn’t repair Dubai’s tarnished reputation as a financial centre and issuer, or give any reason to suggest investors will rush back to help Dubai refinance the $100.6 billion of outstanding debt Moody’s believes Dubai Inc owes, $12.5 billion of it due next year. And it leaves significant questions unanswered about the credibility of the sukuk industry that has become a bedrock of global Islamic finance.
It is in some sense a shame that Nakheel didn’t enter formal default. While that sounds absurd, professionals across the Middle East and the Islamic finance industry globally had become increasingly sanguine about a potential Nakheel default, believing it would have answered vital questions about just what happens when a sukuk turns bad. Continue…
Popularity: 4% [?]
- Dubai: a default saved, an opportunity missed
- Middle East loses its allure for foreign managers
- Emerging Markets Global Financial Power: Nizam Yaquby
- Can capital protection be Shariah compliant?
- Size will matter in Islamic banking
- Middle East developers widen their nets
- Blue City, Oman: when a tower is not enough
- Dubai faces property crash
- Shariah funds: all about equity and trade finance
- Islamic asset management mainly a retail story
- Just how big is Islamic asset management?
- Palestine: a conference less ordinary
- Can the West Bank spring a surprise?
- If an Islamic bank fails
- Asset management gets a foothold in Jordan, Lebanon and even Palestine
- Middle East emerges as a private equity centre
- Euromoney GCC asset management guide: strategy
- Euromoney GCC asset management guide: Islamic
- Euromoney GCC asset management guide: product
- Euromoney GCC asset management guide: distribution and clients
- Euromoney GCC asset management guide: regional centres
- Euromoney GCC asset management guide: Regulation in Saudi and Kuwait
- Euromoney GCC asset management guide: Gulf economics and the asset management industry
- Has Islamic finance taken its opportunity?
- Palestinian prime minister Salam Fayyad: calls for US support
- Saudi’s financial revolution
- The LBO hits Islamic finance – but how?
- Understanding ADIA
- Gulf sovereign wealth funds look east
- Deal of the year: Maxis Communications
- The Shariah scholar cartel: Asiamoney, September 2006
Most Popular Content
- Asia’s outlook a tale of cautious optimism: IFR Asia
- Aussie securitisation shows signs of revival: IFR Asia
- Malaysia’s Democracy on Trial
- Treasurers and their bankers: a relationship soured?
- A decade in Asia’s debt markets
- The road for the Renminbi: Asiamoney
- Dubai: a default saved, an opportunity missed
- Middle East loses its allure for foreign managers
- Sun Herald: Investing for Income
- Smooth-talking Westpac’s banana slip-up
- Asia’s best managed companies: Euromoney
- Excellent overview of the context of the Anwar sodomy II trial....
- Since Malaysia independent on 31 August 1963,The Malay then was not so progressi...
- Fairdinkum,
a great leader in the making, DS Anwar Ibrahim...
- Most helpful! Should we buy Lasvegas Sands shares (was $144 in 2007, now $ 14.6...
- Chris,
Great article, well researched and was very interesting to read. Most i...