IslamicFinance.de

Nakheel PJSC’s plan to offer Islamic bonds to creditors may revive sukuk trading in the Persian Gulf after new sales fell to a five-year low, according to Moody’s Investors Service and Mashreq Capital DIFC Ltd. Thomas Barry said that contractors are likely to sell Nakheel’s sukuk to pay bills. Thomas Barry is chief executive officer of Arabtec Construction LLC. In April, the company said its trade creditors would be offered 100 percent recovery of their claims -- 40 percent through a cash payment and 60 percent in the form of a tradable sukuk. More than 80 percent of Nakheel’s contractors have agreed. Abdul Kadir Hussain said sukuk sales from the region are likely to pick up in the fourth quarter. Nakheel and its parent Dubai World, one of the emirate’s three main holding companies, are renegotiating debt terms after the deepest financial crisis since the 1930s roiled Dubai’s real-estate market and left companies unable to raise financing. Property prices have fallen more than 50 percent in the city as banks cut mortgage lending, according to estimates from Colliers International.