DASHBOARD | Dubai Debt Market
The chart below summarize how Dubai ranks against the benchmark markets under the three main areas of product innovation,
infrastructure and regulatory framework. Dubai’s conventional debt market is more mature compared to its regional neighbours, Riyadh
and Manama in the areas of product innovation and infrastructure. Compared to more developed cities, such as New York, London,
Singapore and Hong Kong, Dubai is less developed with regards to the use of derivatives and green bonds, an effective benchmark yield
curve is under-developed, and the registration and approval process for bond issuances is relatively longer. Dubai ranks on par with New
York, London, Singapore and Hong Kong, with regards to the use of covered bonds and the supporting regulatory framework, it ranks
higher than New York and Singapore.
Conventional debt market benchmarking
duc
t inn
ova
tion
Cov
ered
Gov
bon
ern
ds
Der
men
ivat
t bo
i
v
nd d
es
eriv
Gre atives
en b
ond
Infr
s
astr
uct
Trad
ure
ing
Cle
plat
arin
form
g an
d se
s
ttle
men
I
Dat
n
t
ves
Ben
aba
tor
chm
se f
bas
ark
or in
e
Reg
yiel
fo
istra
d cu
tion rmatio
rve
n di
and
sclo
app
sure
rova
Reg
l pro
ulat
c
ory
fram ess
ewo
rk
Cre
dit r
Inve
atin
stor
g
pro
tect
ion
Dubai
New York
Well developed
London
Singapore Hong Kong
Adequate
Riyadh
Underdeveloped
Manama
Not available*
In terms of maturity of the Islamic debt market Malaysia is the most developed, whilst Dubai ranks on par with Riyadh and Doha with
regards to product innovation, supporting infrastructure and the regulatory framework. In addition, London and Kuala Lumpur have a
more developed dispute resolution and bankruptcy regulatory framework when compared to Dubai.
Sha
ria’a
com
Islamic debt market benchmarking
Pro
duc
plia
nt r
t inn
epu
ova
Sha
rch
tion
ase
ria’a
agre
com
eme
plia
nt d
nt
eriv
ativ
Sec
e
G
s
reen
ond
ary
Suk
Infr
S
u
u
k
a
Prim
kuk
trad struct
ary
ure
ing
offe
Dis
p
r
i
l
n
a
put
tfor
g to
e re
ms
reta
solu
Reg
il in
tion
ulat
ves
t
a
o
o
n
r
rs
Sha
y fra
d ba
ria’a
nkr
mew
Prim
upt
boa
ork
ary
cy r
r
d
to o
sale
egu
vers
latio
s of
ee s
Suk
n
tan
uk t
dar
o re
ds
tail
inve
stor
s
Dubai Kuala Lumpur Riyadh
Well developed
Adequate
Doha
London
Underdeveloped
Manama
Not available
The introduction of derivatives on Dubai’s exchanges (e.g. interest rate swaps, Government bond forwards and currency exchange swaps)
may help support risk management and increase market liquidity. To be in line with the more developed markets of London and New York,
Dubai may wish to consider shortening the settlement cycle for Government bonds thereby providing the stimulus for increased activity
levels through faster execution and reduced settlement risk.
April 2016 | www.wealth-monitor.com
Source: ‘Developing Dubai’