UAE: Dubai

Interest in Dubai’s bond market is undergoing a revival, with enthusiasm tracking the steady rebound of the emirate’s economy. There are still some lingering concerns, however, over whether all bonds can be repaid on time or if another round of rescheduling will be required.

As Dubai’s construction sector moves into recovery mode, many contractors operating in the emirate are keeping an eye on opportunities at home while stepping up efforts to fill gaps in their order books abroad.

Set to ride a rising wave of interest in its free trade zones, Dubai is cashing in on its long-term investments to further bolster its economy by attracting new clients looking for a stable and central base of operations. Dubai’s free zones are becoming increasingly important to its economy and represent a strengthening bond between the emirate and global trade.

Dubai’s economy is expected to post solid growth in 2012, with the emirate’s manufacturing industry tipped to be one of the key contributors. The rate of growth, however, will likely depend on how international markets withstand the fallout from the European debt crisis and other destabilising factors.

Recent strong performance of the retail sector looks to indicate that Dubai’s tourism sector could be entering a period of sustained growth, despite the regional impact of the Arab Spring. Traditionally, these two sectors have been closely linked, with millions of tourists coming to the emirate each year to experience what has become known as the “shopping capital of the Middle East”.

In mid-January 2012, Dubai unveiled the details of a massive solar energy facility it plans to build in the desert, part of a larger scheme to meet the energy needs of the emirate and reduce its reliance on imported natural gas to fire its power stations.