A record run for UAE property bonds is unravelling

A record run for UAE property bonds is unraveling on the back of the US-Israeli war on Iran. UAE corporate debt is the worst-performing segment in emerging markets this month, with real estate names taking the heaviest losses, marking a sharp reversal for the sector following a borrowing surge, according to Bloomberg. After another record-setting 2025 for real estate bond issuance — and issuances in January and February setting expectations for 2026 to be another bumper year — that debt is now being sold off.

The losses have been sharpest among the most leveraged names, including Binghatti and Omniyat Holdings, which are just two of the firms seeing a “mild correction” that some analysts believe was overdue. Still, the market does not appear to be pricing in a replay of Dubai’s 2029 crash.

Some investors see a buying window in the dislocation. One analyst pointed to short-dated bonds from Damac Properties — maturing April 2027 — as having held up relatively well, dropping just 25 cents / USD 1 to 100.3. Longer-dated paper is “really about the sector outlook, which is too early to call.”

Watch this space

#1- DHL is still bullish on MENA+: The global logistics giant DHL is going ahead with plans to invest in the region, war or not, CEO Mike Parra told Sky News Arabia (watch, runtime: 4:43). DHL said last year that it would deploy over EUR 500 mn in the region between 2024 and 2030, with a focus on the UAE and Saudi Arabia. The strategy includes upgrades to logistics hub and gateway infrastructure while expanding air fleet capacity. DHL said late last year that it would invest in a EUR 24 mn logistics hub in Cairo.

#2- It’s interest rate week in the West around the world: The Fed will make its interest rate announcement on Wednesday — and Thursday is equally big a day, with the ECB, Bank of England, and Bank of Japan doing the same. Central banks in China, Canada, Australia, Brazil, Sweden, and Switzerland are also meeting this week to set rates.

Sign of the times

Syria’s 15-year lockout from the global financial system is coming to an end, with the the country’s account at the Federal Reserve Bank of New York set to be unfrozen “soon,” Syrian Central Bank Governor Abdul Qader Al-Hasrieh said on Saturday. Syria’s central bank has also reached an agreement to open a correspondent account with the Bank of Canada, Canada’s central bank.

Setting the record straight

Citi’s offices and branches remain undamaged by the regional war, the bank said after moving to evacuate its office in DIFC last week after Iran was reported to be targeting US banks and tech firms with Israeli links. The evacuation was out of concern for employee safety, Citi stressed, noting it will continue to serve its regional clients and has no intention of leaving the region.