Capital markets
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% [?]
- Aussie securitisation shows signs of revival: IFR Asia
- Treasurers and their bankers: a relationship soured?
- A decade in Asia’s debt markets
- Dubai: a default saved, an opportunity missed
- Sun Herald: Investing for Income
- Asia Risk: Thai derivatives take steps towards open market
- Hong Kong’s RMB market a forerunner for convertibility
- IFR Asia: Southeast Asia debt capital markets guide – region
- IFR Asia: Southeast Asia debt capital markets guide – the Philippines
- IFR Asia: Southeast Asia debt capital markets guide – Singapore
- IFR Asia: Southeast Asia debt capital markets guide: Indonesia
- IFR Asia: Southeast Asia debt capital markets guide – Vietnam
- IFR Asia: Southeast Asia debt capital markets guide – Thailand
- IFR Asia: Southeast Asian debt capital market review – Malaysia
- China holds key to carbon trading
- Sri Lanka looks beyond euphoria
- IFR issuer profile: San Miguel
- IFR issuer profile: Country Garden
- IFR issuer profile: Olam
- All we are saying is give peace a price
- IFR Asia: appetite slowly returns for project finance
- IFR Asia Malaysia Islamic finance report: Zeti interview
- IFR Asia Malaysia Islamic finance report: Labuan
- IFR Asia Malaysia Islamic finance report: capital markets
- II China report: capital markets. Shanghai bounces back
- Asian real estate: after the plunge, the rebound
- Indonesia’s bond market waits for sovereign lead
- Australian borrowers leave the guarantee safety net
- Panda bonds: great idea, no execution
- Euromoney awards for excellence: Singapore
- Euromoney awards for excellence: Malaysia
- Euromoney awards for excellence: Australia
- Making sense of distressed debt in Asia – IFR
- Brisconnections: infrastructure’s disconnect
- Indonesia: Landmark global debt deals underline investor confidence
- China corporate governance report: foreign listings
- China’s asset managers begin the bounceback after the pain
- Malaysia debt markets report: Bank Negara interview
- Malaysia debt markets report: Hyundai Capital profile
- Malaysia debt markets report: Kexim profile
- Malaysia debt markets report: Islamic markets
- Malaysia debt markets report: conventional markets
- Malaysia debt markets report: Foreign issuers
- Asian bonds at a crossroads
- Malaysia: testing Bursa’s claims of resilience
- A world of angry bankers
- Decoupling: the myth exploded
- Dark clouds for Japanese real estate
- Australia’s battered listed property sector
- IFR deal profiles: Ballarpur, Reliance Power, Tata, China South Locomotive
- Indonesia’s sukuk will be a Shariah landmark
- Why bother going global?
- Bangladesh: Grameenphone’s daring venture
- Can the West Bank spring a surprise?
- Ho gets SJM to the table
- Kenichi Watanabe: Nomura’s global warchest
- IFR deal profiles: ANZ, Kexim, the Philippines, Vietnam
- What if China slips?
- Islamic finance: Malaysia goes global
- Euromoney awards for excellence 2008: Australia, Singapore, Taiwan
- The non-Muslim world fights for Islamic finance
- Babcock & Brown faces up to leaner times
- IFR deal profiles: Shenzhen Development Bank, China Railways
- Taiwan bouyant on China hopes
- IFR deal profiles: Reliance Energy, Bakrie
- What happens to Australia if China falls?
- Asian securitisation goes local
- Vietnam feeling the pain of quick development
- Asian banks take the lead in local funding
- Australia moves towards agency model
- In retirement, Australia can’t turn the tap off
- Vietnam vetoes Morgan Stanley deal
- Malaysia hopes Ninth Five Year Plan will insulate it from global downturn
- The LBO hits Islamic finance – but how?
- Deal of the year: Maxis Communications
- Lenders get selective on leverage
- Monolines the next shoe to drop?
- What went wrong in Australia?
- Green finance: cleaning up in China – Euromoney, September 2007
- China’s rainmakers – Euromoney, April 2007
- Shaukat Aziz, Pakistan prime minister: Institutional Investor, December 2006
- Can Leung and Ren get Salomon back into China? Asiamoney, November 2001
- The budget, the bull and the BSE: Asiamoney cover story, June 2001
- Angry, driven, smart – and gone. Kwik Kian Gie, Indonesian finance minister, Asiamoney, September 2000
- Why this deal changes everything: PCCW, Asiamoney, July 2000
- Why GEM has got its fists up: KS Lo, Asiamoney, June 2000
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...