INTERNATIONAL. Investors should buy Dubai sovereign bonds as the emirate seeks to refinance its maturing debt with the help of oil-rich Abu Dhabi and as it focuses on an 'orderly exit from the crisis,' reported Bloomberg, citing a Barclays Capital report.

“We consider Dubai credit as attractively priced at current levels,” London-based analysts including Alia Moubayed wrote in a report dated November 4. “We recommend a long position in Dubai sovereign credit,” and see yesterday’s negative price actions as an opportunity to buy, the report said.

The cost of protecting Dubai bonds from default rose 1.8% to 314 basis points Wdnesday, the highest in about two months, five-year credit-default swap prices show.

Dubai borrowed US$10 billion by selling bonds to the country’s central bank in February, and may raise another US$10 billion in November, Mohammed Alabbar, who headed the government committee evaluating the impact of the credit crisis on Dubai, said last month.

The emirate’s ability to raise the second $10 billion with the support of Abu Dhabi and the likely repayment of Nakheel's Islamic bonds of US$3.52 billion due in December will help its debt, Barclays said. The analysts prefer the emirate’s newly issued Islamic dollar and dirham bonds.

Dubai on October 28 raised US$1.93 billion in its first Islamic bond sale, the biggest from the Gulf region this year.

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