Dubai to meet foreign investors as debt looms

Dubai officials will meet with potential fixed income & Islamic investors in EU and Asia starting Oct22 ahead of possibly selling more debt this year, according an invitation sent to bankers.
Dubai Islamic Bank, Mitsubishi UFJ Securities International, Standard Chartered and UBS Investment Bank will arrange the meetings in Hong Kong, London, Singapore, Dubai and Frankfurt, according to the invitation seen by Zawya Dow Jones.

Potential investors will meet top officials from Dubai's Department of Finance including its director general Abdulrahman Al Saleh, who is overseeing its $20 billion bond program that's intended to help support its economy and struggling government-related companies.

A external spokesman for the department told Zawya Dow Jones that the roadshows aren't intended to market the second tranche of the bond program. He didn't specify a reason for the meetings, which also will include the department's deputy director, Mohammed Al Shehi, and its director of fund management Marwan Abedin.

Bankers remain concerned about Dubai's plans to service its debt pile that's estimated to exceed $80 billion. Their attention is focused on a $3.52 billion Islamic bond issued by Dubai World's real estate unit Nakheel that's due December and a $1 billion sovereign sukuk, or Islamic bond, issued by Dubai Civil Aviation Authority that matures Nov.4.

The Abu Dhabi-based central bank of the United Arab Emirates bought the first $10 billion bond issued by Dubai earlier this year when fear of the emirate defaulting on its debts was at its height.

Recently, Dubai officials including Omar bin Sulaiman, the head of the Dubai International Financial Center, have said they expect strong interest from private investors for the second $10 billion bond that's expected this year.

Mohamed Alabbar, who oversees a committee evaluating the impact of the global credit crisis told CNN on Oct. 9 that Dubai may raise the additional $10 billion by November.

"They will likely raise as much as they can through this bond issue and whatever is remaining they'll raise from Abu Dhabi," a senior banker told Zawya Dow Jones on Monday.