| The oil-rich Persian Gulf emirate of Abu Dhabi may find it cheaper to borrow with Islamic bonds than non-Shariah compliant securities, National Bank of Abu Dhabi PJSC and EFG-Hermes UAE Ltd say. The yield on the emirate’s 5.5 percent dollar-denominated non-Islamic note due April 2014 fell 3 basis points, or 0.03 percentage point, last week to 2.32 percent on March 11, the lowest in a month on speculation the United Arab Emirates will be spared from protests that toppled the governments of Egypt and Tunisia. By contrast, the yield on neighbouring Dubai’s 6.396 percent sukuk maturing in November 2014 was at 6.23 percent. Abu Dhabi, the richest of the seven sheikhdoms that make up the UAE, may sell $1.5bn in bonds this year, its first international securities since April 2009, to create a longer maturity benchmark, Standard Chartered Plc said in a March 7 report. |
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