The early summer torpor of the Dubai Financial Market (DFM) was
lifted in early July when trading began in a groundbreaking bond
arranged by the leading local banks for Emirates Airlines. Bankers
hope that, at long last, this will provide the impetus for a
genuine debt and equity capital market in the United Arab Emirates.
Some banks expect more bonds to be issued later in the year and
one local investment company is planning an Arab fixed-income fund.
There is growing confidence in Abu Dhabi and Dubai that investors
from the Arab world, having been badly burnt in the sharp downturn
on Nasdaq and other western markets, are now looking to place their
money locally.
This will be a lengthy process, as most local bankers appreciate.
The UAE is no different to other Gulf markets. Its capital markets
need to be more transparent, less volatile and prepared to accept
foreign investors in...
