Dubai World Episode Gives Boost to Investor’s Confidence

According to investment bankers at Shuaa Capital, the confidence in the air has built up amongst the investors around the Gulf region. They optimistically predict the region’s economic condition would take its stride towards the rising end in the next six months. One of the leading investment bank in UAE, Shauaa Capital submitted its December GCC investor sentiment report which reflected the fall in investors confidence due the reconstruction of the debt on 25^th Nov’09 by Dubai World. But, positivity has returned after reimbursement of $4.1 billion by Sukuk by Nakheel, PJSC. It is observed, since then there has been a turn around in the market sentiment since the debt announcement of Dubai World was made in November.

Dubai World and its creditors have met to reconstruct the maturing liabilities worth $22 billion, where the final plan would be submitted, in early January, to the lender. There was a speculation over Government’s support to help the distressed firms. Shuaa Capital conducted couple of surveys. One was before Nakheel Sukuk’s repayment and one was after the dues were settled. The Shuaa report revealed progress in GCC economic conditions over the next 6 months after Nakheel’s repayment. The polls show more investors are expected to invest in GCC market and BRIC in the next six months. It is estimated the regional stock market would generate gains in the coming 6 months, where the biggest rise is expected in Abu Dhabi which was projected by 35.5% of investors, 12.9% for Dubai and 13.1% for Nasdaq Dubai.