Dubai: Looking For Value

Rumours are still swirling on the subject of the Dubai World (DW) restructuring, and we are not yet convinced that the time to initiate a long-term bullish position on Dubai stocks has come, in spite of the recent rally. We have heard various theories on DW, and we are inclined to the optimistic side: the government got burnt when it tested the water in November and will be keen to avoid similar turbulence, particularly as Abu Dhabi was affected nearly as badly as Dubai. The fact that the Nakheel sukuk was paid back in full illustrates this, in our view.

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