Dubai, DP World Sukuk to Gain as Accord Nears: Islamic Finance
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Islamic bonds in Dubai are set to extend this year’s rally as Dubai World predicted it will complete debt restructuring in the “coming months,” said Unicorn Investment Bank BSC and Emirates NBD Asset Management.
The average spread on securities that comply with religious principles sold by Gulf Cooperation Council borrowers narrowed six basis points to 545 percentage points on July 23, a day after Dubai World announced the estimated timeframe for renegotiating its debt, according to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index. The difference reached 647 points on Nov. 30 after the state-owned company said it will delay repayment of its debt.