Dubai Islamic bonds are world’s best performer as economy gains traction
Dubai’s Islamic bonds are the world’s best-performing sovereign dollar sukuk this quarter as the economy of the Arabian Gulf business hub gathers steam, with bank profits, tourist numbers and property prices rising. Dubai’s US$650 million of notes due May 2022 returned 5.3 per cent, the most among 33 Sharia-compliant sovereign bonds tracked by Bloomberg. The average return was 1.3 per cent. Dubai’s CDS, contracts insuring the emirate’s debt against default for five years, fell 86 basis points in the past 12 months to 199. They reached a five-year low of 187 on May 7. Dubai’s economy is set to expand 4.6 per cent, on average, between 2012 and 2015.
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