Dubai: Growing Pains For Islamic Investments?
By: Jonathan Lawrence, Philip J. Morgan, and Neil Nick Robson
The recent announcements from Dubai have turned the spotlight onto Islamic investments. The attached client alert assesses the structure, enforceability, risks and valuation issues specifically associated with the Dubai Nakheel sukuk bond and the increased uncertainty regarding the legal structures and insolvency regimes underpinning Islamic investment structures in the region. Even though the Government of Abu Dhabi and the UAE Central Bank have recently bailed out the real estate development company Nakheel and its parent company, Dubai World, there is no guarantee that they will do so again in the future. As a result of these factors, investment managers should consider examining all their Islamic investments, particularly those connected to Dubai, and working with valuation firms to determine how to approach the valuation of such investments.
To view the complete alert online, click here.
