The international investment in Nakheels bond will see
UAE legislation and restructuring tools used for the first
time, and could set a precedent for how practices from other
jurisdictions can be used in the Middle East
The sukuk restructurings that have attracted
attention this year (Investment Dar, Kuwaits Global
Investment) have largely been negotiated between local banks in
the Middle East, and so have been subject to local pressure to
seek the best outcome for the regions banking system,
while following the cultural model of keeping negotiations
behind closed doors until confirmed.
Nakheel presents a new threat. Not only are...