Dubai corporates earn positive outlook rating

Dubai’s quasi-sovereign issuers have got a pat on their back from Lehman Brothers, which is maintaining a ‘positive outlook’ on them. In a report it said Dubai’s major corporates are at the initial stages of development and are thirsty for capital.

It said local companies enjoy “solid support from the government, yet are being encouraged to transform themselves into successful standalone corporates”.

The report said Dubai’s real estate growth is among the highest in the world.

The sector remains attractively priced and offers value from a yield perspective, the report said, adding that there is a risk that continued heavy supply could weigh on technicals.

However, it maintains that most of the firms, which have got high rating, have sound plans for expansion. “While the corporates are closely watched by the sovereign, they operate as commercial entities and are not subject to interference.”