Dhabi and Qatar bonds woo investors

Dhabi and Qatar bonds woo investorsUncertainties prevailing in the global market made investors buying Abu Dhabi and Qatar government debt, apparently, due to safe investment heaven status of Gulf countries given to their strong financial position despite subdued investor's sentiments at global level. The move pushed yields on the bonds to historic lows.

Abdul Kadir Hussain, the chief executive of Mashreq Capital in Dubai added that people are feeling safe in Gulf region and looking forward to invest in the government bonds. Debt issued by state-controlled companies is also under pressure despite their comparative strong economic position.

Abu Dhabi government bonds maturing in 2019 are yielding about 3.2 per cent while that of Qatari bonds that also mature in 2019 are yielding 3 per cent. The situation is even worse in the European markets shed more than 20 per cent of their value in the past month amid renewed concern about government debts and worries of possible recession in the world.

Mr. Hussain said, "When you look at these yields in terms of absolute yields, it doesn't look very attractive, but when you look at it from a relative standpoint it becomes an easy and safe place to park your cash."

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