GCC Credit Thoughts – February 3, 2010

GCC Credit Overview – Tuesday's Recap

• Spreads were marginally tighter across the GCC but activity remains muted.
  
• Most 5 yr Sovereign CDS levels (Dubai, Abu Dhabi, Qatar, Bahrain) were tighter by 2-5 bps, but the Dubai 14$ cash remains better offered.
  
• From the Dubai Inc. stable, Jafza opened strong but traded down sharply at the open. We are also seeing good two way interest in the Nakheel 10s and 11s.
  
• Most Abu Dhabi quasi sovs were better bid through the day with regional real money accounts bargain hunting.
  
• S&P lowered its rating on Gulf Finance House to CC/C, with a negative outlook, based on their beliefs that GFH's liquidity position is under immediate and sever stress, that the company was not taking any measures to strengthen liquidity and had large debt repayments due in the coming weeks ($300mm syndicated loan due on Feb. 10). Efforts to sell investments to meet liquidity demands is taking a lot longer than expected and there seems to be a cash crunch in within GFH. The stock was suspended during the day in Bahrain.
  
• Whispers were out an about on the proposed Dar Al Arkan issue - $500 million size, pricing between 10.50 – 11.00%, 5 year tenor. Please see yesterday afternoon's note for my thoughts on the issue.

In the News

• Emirates Airlines announced yesterday that DW has not had a direct impact on their operations and that they are sitting on a considerable cash balance, and do not foresee any difficulties in financing the $55 billion of orders they have with Airbus and Boeing for new aircraft. It plans to take delivery of 11 aircraft in 2010. Emirates has about $3.1 billion of debt outstanding and a $500 million bond that matures in 2011. Emirates further said that they would look for the right opportunity to refinance the bond. Sh. Ahmed, the Chairman of Emirates Airlines and the head of Dubai's fiscal committee, expects Emirates to make a profit of $544 million in 2009, in spite of revenues falling by 13.50% in the first half of 2009 – earnings were up 165% on the back of falling costs.
  
• Moody's has given Mubadala's new short term borrowing program a Prime-1 rating, which is its highest rating for short term borrowers. This short term facility will allow Mubadala to borrow funds, on a short term basis, in the international markets. Fitch and S&P have also given the program their top ratings, stressing the close relationship between Mubadala and Abu Dhabi, and assuming full support of the sovereign.

New Issue Pipeline

1. Dar Al Arkan – 5 year, around $500 – 750 million ($750 is the target size), pricing between 10.50 – 11.00 %. Looking to close deal next week and the books building is underway – taking a little longer than anticipated. Moody's rating is Ba2, BB-
   
2. United Gulf Bank - $1 billion EMTN program announced – Roadshow has commenced. Moody's rates the notes Baa3 and Ba1 for the senior unsecured and the subordinate, respectively. The notes also carry a negative outlook.
   
3. Issues expected for Q.2 2010 – DEWA $1.5 billion conventional, Bahrain 10 year conventional
   
4. Other issues expected - Gulf International Bank, Aramco, UAE Sovereign

New data points for my table going forward – I'm going to show how yields for the more liquid GCC names have behaved in 2010 – show deltas between today's yields and those offered on January 4, 2010. Highlighted are those names I believe look interesting today for various reasons – happy to share those reasons in more detail if you would like. For old time's sake, I'm also including yield movements from November 25^th.

Issue	Offer Yield - January 4th AM %	Offer Yield - February 3rd AM %	Yield Expansion (contraction) for 2010 - bps	Yield Expansion (contraction) From November 25th- bps
Abu Dhabi Sovereign 12	2.66	2.17	-49	-48
Abu Dhabi Sovereign 14	3.83	3.67	-16	-13
Abu Dhabi Sovereign 19	5.2	5.14	-6	-11
Mubadala 14	4.4	4.57	17	76
Mubadala 19	6.4	6.60	20	72
TDIC Finance	5.42	5.27	-15	90
TDIC Sukuk	5.13	5.37	24	116
Dolphin Energy	5.54	5.75	21	37
TAQA 5.62 12	4.65	4.05	-60	40
TAQA 6.6 13	5.12	5.17	5	102
TAQA 4 3/4 14	5.3	5.50	20	98
TAQA 5 7/8 16	6.24	6.15	-9	61
TAQA 6.165 17	6.41	6.41	0	57
TAQA 7 1/4 18	6.55	6.59	4	58
TAQA 6 1/4 19	6.49	6.64	15	86
TAQA 6 1/2 36	7.09	7.36	27	70
Aldar 13	7.23	7.79	56	220
Aldar 14	7.66	7.77	11	136
FGB 12	5.32	5.26	-6	122
NBAD 14	4.62	4.53	-9	61
ADCB 14	6.35	6.91	56	163
DIFC	19.97	19.48	-49	1242
JAFZA	12.41	13.28	87	517
DP World 17	8.54	8.87	33	176
Dubai Sovereign USD	7.85	8.62	77	230
Dubai Sovereign AED	6.43	7.12	69	157
CBB 14 Sukuk	4.22	4.40	18	33
RAK Sukuk	5.96	5.90	-6	30
Qatar 14	3.68	3.65	-3	3
Qatar 15	3.83	3.89	6	16
Qatar 19	4.95	5.13	18	13
Qatar 20	5.03	5.15	12	9
Qatar 30	6.05	6.25	20	41
Qatar 40	6.29	6.41	12	30
QTEL 14	4.13	4.21	8	1
QTEL 19	5.88	5.90	2	17
RASGAS 4 1/2 12	2.68	2.72	4	-11
RASGAS 8.294 14	5.33	5.53	20	27
RASGAS 5 1/2 14	4.03	4.18	15	26
RASGAS 5.832 16	4.78	4.94	16	23
RASGAS 6 3/4 19	5.35	5.40	5	10
RASGAS 5.298 20	5.17	5.24	7	18
RASGAS 5.838 27	5.84	5.93	9	45
RASGAS 6.332 27	6.14	6.19	5	9
QGTS6.067 33	6.84	6.93	9	28
QGTS6.267 33	6.87	6.96	9	27
CBQ 14	5.35	5.54	19	54
CBQ 19	7.68	7.57	-11	21

GCC Credit Thoughts – February 2, 2010

GCC Credit Overview – Monday's Recap

• It was a mixed day in regional markets with Dubai and Abu Dhabi sovereign spreads unchanged while Qatar 5 Yr CDS was marginally wider at 108/112 (+3 bps).
  
• The short dated Qatar sovereigns were unchanged, mainly supported by regional buyers.
  
• We are seeing better selling in DUGB 14$ cash even though Dubai's CDS remained unchanged at the 490/510 level. Along with the sovereigns, no takers for Dubai Inc. as most names were better offered and we saw a decent sell-off in Nak10s and 11s.
  
• Abu Dhabi corporates that were over sold in last 2 days (Aldar14s, Mubadala TDIC 14 conventional) recovered.
  
• The GCC financials were a mixed bag - NBAD14s were stronger post results and the market remains a better buyer of Ebiuh, Masq and FGB paper, while ADCB and Comqat remain better offered.
  

So, the market has liked NBAD's results, so let's take a closer look at the name:

Review of NBAD's results

The bank reported results yesterday that were behind consensus estimates largely on a larger than expected provisioning charge of AED1.4bn. ROE was however strong at 20% with the Groups target LT ROE at 25%.

Some of the salient points include:

• Total assets were approx 20% higher than 2008, at AED197bn
  
• Customer deposits grew by 17% to AED121bn while loans grew by 18% to AED132bn
  
• Total capital adequacy ratio continues to be very strong at 17.4% (up from 15.4% previously) and Tier 1 capital sits at 14.9%
  
• Tier 1 capital was enhanced from Abu Dhabi through an injection of AED4bn notes in March 09
  
• Net interest income jumped by almost 27% to AED4.57bn compared to AED3.6bn in 2008
  
• A 10% cash dividend and 10% stock dividend has been proposed
  

  
   

Overall, a fairly decent set of numbers given the extremely challenging environment. I think NBAD is also being very conservative with their provisioning which reflects on the general nature of the bank. It's certainly comforting to see that YoY, both deposits and loans grew by a healthy 17%-18%.

What's the scoop on NBAD credit?

Though I have been staying away from GCC financials over the past few weeks, I would have to admit that NBAD is one of the better stories around. While I don't expect yields to contract significantly, I think this is one bond that should hold up well in the current volatile environment; especially against the backdrop of increased NPL provisioning in the UAE. On the GCC Credit front, NBAD14s are a defensive play. The bank is 70.5% owned by ADIA (Abu Dhabi Investment Authority) and there is a very slim chance that we are going to see a default on this name. Moreover, cashflow generation is positive with the Group sitting on AED12bn in cash as of 3Q09 (FY09 cashflow numbers are not out yet).  NBAD is also rated A+ on a composite rating by the three key ratings agencies, and is one of the few GCC banks that are not on credit watch negative.

The credit has been range bound in an environment that has seen numerous GCC bank credits widen on the back of rising NPL's and exposure to names like Saad/Al Gosaibi and Dubai World (NBAD DW announcement). NBAD has officially announced that their DW exposure is minimal, at $239m, a mere 0.1% of its total asset base. After hitting a high of almost 102 on the offer side, the bond is trading below par right now at 99 5/8, stronger yesterday after the results were announced. On an offer YTM of 4.59%, NBAD14s are trading much wider than most of their global banking counterparts (ex US banks) (see table below).

NBAD's yields are attractive compared to its global peers (Ex US banks)

Short Name	Coupon	Maturity	Bloomberg Composite	Maturity / Refund Type	Currency	Bid Price	Bid Yield To Maturity
ROYAL BK SCOTLND	0.00	12/10/2014	A+	AT MATURITY	USD	80.12	4.67
NAT BK ABU DHABI	4.50	9/11/2014	A+	AT MATURITY	USD	99.45	4.59
CAIXA GERAL DEPO	3.51	10/7/2014	AA-	AT MATURITY	EUR	97.73	4.05
BANCA NAZ LAVORO	3.76	12/31/2014	NR	AT MATURITY	EUR	98.93	4.04
BARCLAYS BK PLC	5.00	10/22/2014	NR	AT MATURITY	GBP	104.04	4.04
BPCE	0.00	11/22/2014	A+	AT MATURITY	EUR	84.42	3.59
AUST & NZ BANK	3.60	10/21/2014	AA	AT MATURITY	USD	100.10	3.58
NORDEA BANK AB	3.70	11/13/2014	AA-	AT MATURITY	USD	100.76	3.52
LANDESBK BERLIN	2.20	11/17/2014	A+	AT MATURITY	EUR	96.21	3.48
COMMERZBANK AG	3.32	12/23/2014	NR	AT MATURITY	EUR	99.39	3.45
WESTPAC BANKING	3.60	10/17/2014	AA	AT MATURITY	USD	100.93	3.39
FORTIS BNK SA/NV	4.88	10/15/2014	AA-	AT MATURITY	EUR	106.76	3.29
CREDIT AGRICOLE	0.86	9/30/2014	AA-	AT MATURITY	GBP	96.80	1.58
BANQ FED CRD MUT	0.86	12/15/2014	AA-	AT MATURITY	EUR	97.30	1.39
DANSKE BANK A/S	1.60	10/19/2014	NR	AT MATURITY	EUR	101.15	1.34
DNB NOR BANK ASA	0.95	10/30/2014	A+	AT MATURITY	EUR	98.44	1.28
BANQ FED CRD MUT	0.92	12/15/2014	NR	AT MATURITY	EUR	98.10	1.28
BANCA INTESA SPA	0.90	10/1/2014	AA-	AT MATURITY	EUR	98.32	1.24
DNB NOR BANK ASA	1.30	9/23/2014	NR	AT MATURITY	USD	101.47	0.98

 

BUY NBAD14s for LT buy and hold accounts….not for a ST trade

On a Z-spread basis, NBAD14s credit has seen a widening of spreads since the middle of January 2010, like most other GCC names, trading at a z-spread of around 208 right now. In a normalized environment, the bonds traded within a z-spread range of 160-190 (period of Sept. to Nov. 2009). I'd be comfortable in assuming that NBAD's could trade back to those levels in the medium term. If you are looking for a financial play, it doesn't get more blue blood than this name in my opinion.

 

 

GCC Credit Thoughts – February 1, 2010

GCC Credit Overview – Friday's Recap

• The GCC credit markets opened wider on Friday, echoing the continuation of the jitters being felt in the global markets – the widening in Greece, the CEEMEA SovX Index out by more than 10 bps and Asian equities in the red.
  
• Activity and volumes were fairly low and concentrated in the Abu Dhabi and Qatari quasi sovereigns, most notably RasGas, which widened.
  
• Moody's downgrade of Aldar on Thursday, January 28^th, sent ripples through other Abu Dhabi names that are on Moody's list for potential downgrade – Mubadala, TDIC and Taqa – all of whom ended the day on Friday wider from their opening levels. We saw bargain hunting step up towards the end of the session with Western accounts stepping in to establish a floor in our markets.
  
• The financials took a hit across the board – especially ADCB and CBQ19s.
  
• When some of the regional names are coming off a point or a point in a half, it is important to note the volumes being traded – volumes are light and some of these names with dramatic moves are gapping down rather than moving lower on sizeable trades. One low bid being hit can have a severe impact on the levels a particular credit ends the day at.

Ever since Moody's placed 7 Abu Dhabi GRI's on review for possible downgrade on December 9^th, 2009, I have been closely watching the targeted entities. They include Taqa, Mubadala, TDIC, IPIC, Etisalat, Dolphin and Aldar. Moody's had published a "special comment" on January 7^th, in which they explained the rationale behind their placing UAE GRI's on credit watch negative, with the possibility of multi notch downgrades. They announced that they were trying to determine the level of support that each of the companies would receive from the Government, and that implied level of support would assist in buoying the standalone ratings that those entities may have.

In this same report, Moody's highlighted IPIC and Mubadala as entities that were unable to be differentiated from the Government of Abu Dhabi, and could therefore not be assigned stand alone ratings, and had to be rated in line with Abu Dhabi's sovereign rating – Aa2. So, that left 5 "quasi – sovereigns" that could be impacted with a downgrade. The potential for a downgrade has been worrying for me – I have been asked why I have not been bullish Aldar while remaining bullish on a credit like Dolphin. The rationale in my mine was simple – real estate in the UAE has been painted with the broad brush of negativity – when Moody's says that some of the names that it is placing on review for a multi notch downgrade, I couldn't help to think that it's a real estate entity that would be targeted first. In an already jittery market, no matter how much I like a name or how cheap it may look, the possibility of a downgrade makes me think if I can buy it at a later time at similar if not better levels – with Aldar, I felt that I would definitely be able to do that. Dolphin, on the other hand, seemed like a safe bet. It had come off only slightly from the troubles in Late November, and it is the largest revenue contributor to the Mubadala complex. If Mubadala cannot be differentiated from the Government, then the likelihood of its largest revenue contributor being shunned is low, so I believe the downside to Dolphin's ratings is low – plus, they are far away from real estate and are heavily involved in a sector that is the backbone of the GCC's economy.

Aldar was the first to fall – Abu Dhabi's largest property developer was downgraded to Baa2 from A3, on Thursday, on the back of a weaker commercial and residential market having a negative impact on Aldar's stand alone profile (the baseline credit profile was downgraded from Ba3 to B2) – Moody's also said that they expect Aldar's unit sales and land sales will be significantly lower than expected over the next 24-36 months, and due to this, there may be a shortage in cash flow required to fund the debt that mature during that time. Aldar 14s saw their offer yields expand by 54 bps since Thursday morning and the Aldar 11's (convertible) saw yields expand by 15bps. The 13s saw yields expand by 64 bps.

I like Aldar and the entire Abu Dhabi real estate story – the one thing that is preventing me from banging the drums on the name is my expectation for continue volatility in Abu Dhabi from the pending downgrades and for the UAE as a whole from headline risk and continued uncertainty around Dubai World. Also, as a client pointed out this morning – In this kind of global environment, the GCC markets are usually the first to tank and the last to recover in terms of bond prices. The question remains – not IF to buy a particular name you like, but WHEN to buy it. As an example, I liked the Dubai sovereign at 7.86%, really liked them at 8.06% and loved them at 8.40% - I'm thinking that I will be positively giddy about them at 9.00%? So, if I am a long term investors, I should find a level where I am comfortable and pull the trigger, thinking I am going to hold for the coming future. As a short term trade, the will probably go lower before they go higher (let's see how the Q.4 results shape up for the UAE real estate companies) – by they I mean the GCC credit market as a whole.

The table below shows the yield expansion in the Abu Dhabi quasi sovereigns that were earmarked for downgrade (minus Etisalat and IPIC) – I have used offer yields from Thursday morning and compared them with yields from this morning.

	Offer Yield (January 28th)	Offer Yield (Feb. 1)	Yield Expansion bps
TAQAUH 5.62 12	4.05	4.15	10
TAQAUH 6.6 13	5.02	5.1	8
TAQAUH 4 3/4 14	5.12	5.37	25
TAQAUH 5 7/8 16	6.01	6.15	14
TAQAUH 6.165 17	6.33	6.41	8
TAQAUH 7 1/4 18	6.55	6.59	4
TAQAUH 6 1/4 19	6.39	6.5	11
TAQAUH 6 1/2 36	7.18	7.36	18
ALDAR 8 3/4 14	7.37	7.91	54
ALDAR 0 13	7.49	8.13	64
MUBAUH 5 3/4 14	4.48	4.57	9
MUBAUH 7 5/8 19	6.5	6.6	10
TDICUH 6 1/2 14	5.28	5.34	6
TDICUH 4.949 14 (sukuk)	5.31	5.37	6
DOLNRG 5.888 19	5.68	5.75	7

My colleague put together some thoughts on the case for Aldar and Abu Dhabi real estate – I am sharing that below:

The case for Aldar and Abu Dhabi real estate:

Aldar has close ties to the government of Abu Dhabi:

• Aldar Properties was setup as the property development arm of the Abu Dhabi government to implement the Capital's "Plan Abu Dhabi 2030" and as a result, benefits from frequent operational and financial support from the government, which has also granted the group almost all of its land bank at no charge. This enables the company to benefit, both operationally and financially, in the form of free land grants and financial reimbursements/subsidies, thus facilitating smoother project execution and cost efficiencies.
  
• The Government of Abu Dhabi, directly or indirectly through its affiliates, is the majority shareholder with a 38% stake as of December 2009.
  
• Aldar is a quasi government real estate company that is executing the Abu Dhabi Government's vision of providing affordable housing to UAE Nationals through the Al Falah Development. In addition, the redesigning of the Al Raha Beach projects plans to shift the development focus from the high-end to the mid-income segment, where majority of the demand exists. In line with Abu Dhabi's 2030 vision, it is expected that the population for the state should grow to anywhere between 3.5m to 5m people by 2030.

Abu Dhabi's real estate market is under supplied

• Market consensus estimates that the residential real estate segment in Abu Dhabi should remain undersupplied until at least 2013 with an undersupply situation of 27900 units to persist in 2009/2010.
  

  Aldar may hit recurring rental income of more than AED 1bn in 2011 as forecast by industry estimates, mainly from delivery of units in Al Mamoura, Baniyas, and Injazat Data Centre. This segment may form more than 10% of total Group revenue, and if sustainable, will be able to make up from the shortfall of any drop in land sales in the future. Concern is on gearing and on cashflow generation Aldar does have a fairly high debt burden that is characteristic of its heavy capex requirements during its buildout phase. The group currently has a gross debt balance of AED36.8bn (12% ST, 88% LT) which is a mix of loans, corporate conventional and Islamic bonds, and infrastructure loans. They are sitting on AED11bn in cash though. Capex spend in the near future however is expected to decline to the AED7-8bn from around AED18bn in 2009, placing less stress on their balance sheet. Its worth noting though that around AED10bn of Aldars debt was received from the government of Abu Dhabi on generous terms with no interest and principal payments until 2015. The market expects Aldar to turn cash flow positive from 2011 onwards on the back of a slowdown in capex, a pickup in plot sales, and collection of property sales as well as an expanding recurring income stream.

GCC Credit Thoughts – January 28, 2010

GCC Credit Overview – Wednesday's Recap

• Regional credit market remained weak and liquidity is still thin. The 45 bps widening in Greece 5 yr CDS, general weakness in equity markets around the world and the overall concern that economic growth will falter as the Fed and the ECB begin curbing stimulus measures, didn't help the negativity.
  
• Dubai sovereign spreads were marginally tighter though 460/480 (-5 bps) while the corporates continue to be for sale, getting cheaper by the day (especially DIFC and Dubai Holdings).
  
• Qatari paper remains well bid except for a slight sell-off in CBQ14s.
  
• Amongst Abu Dhabi names, the Taqas, ADCB 14s and TDIC were a touch weaker.
  
• We are seeing better buying in Dubai Financials (DIB Sukuk, Emirates Bank) and the region's financial subs in general.
  
• Etisalat has deferred a potential AED 1.8 billion bond sale, citing a cash balance of AED 10 billion, and the lack of need for additional capital.
  

 

GCC Credit Thoughts – January 26, 2010

Monday's Recap

• Spreads on GCC Sovereigns opened tighter yesterday, but were trading as wide as Friday's close towards the afternoon.
  
• The CEEMEA SovX Index, however, was trading tighter at 221 bps (-5bps).
  
• Our desk saw better buying in the Mubadala 14s, the TDIC 14s and the Qatar15s & 20s. We are also continuing to see good two way flow in the DUGB 14 USD.
  
• S&P lowered its rating on Dubai Holdings from BB+ to B citing "lack of information" and said that they expect cash flow generation from Dubai Holdings to be materially weaker than they had initially expected. S&P also said that the market is still lacking "information on potential ongoing government support" and that because of this, S&P was no longer factoring the potential for this support into their rating. They followed the downgrade by withdrawing their rating on DH altogether. DH responded by saying, "Although DHCOG has been engaging S&P and sharing adequate information frequently and in a transparent manner, S&P and nevertheless issued inaccurate statements coupled with factual errors that are misleading…DHCOG discredits and disagrees with the content of the latest S&P report dated 25 January 2010." DH then proceeded to drop S&P as a rating company citing "lack of understanding of the business."
  
  • This sort of news would have clobbered the Dubai Inc. names in normal circumstances, but because volumes have been so anemic lately, it had little real effect. Dubai Inc. names opened weaker in the morning, prior to this news, and continued to hold those levels through the day. The Dubai sovereign sukuk opening tighter in the morning, compared to Friday's close, but widened over the day. Weakness in Dubai wasn't a direct effect of the S&P / Dubai Holdings news.
    

Dar Al Arkan – I attended the roadshow presentation in Dubai yesterday – very impressive turnout. There is definitely interest in this name, as it is the first new issue from the region post Dubai World. It is also a non-investment grade issuer, which should set the benchmark for pricing for other corporates looking to turn to the global debt markets early this year. It is also a key issue because it will show the investor appetite for real estate related plays in the region. The big question mark here is pricing – how aggressively will the company be open to pricing the deal vs. what are the buyers demanding. I had estimated yesterday that pricing would be in the 9% range – after talking to a number of clients, it looks like they would be looking for levels SIGNIFICANTLY higher than that, to make the deal interesting. The Company says that they had enough cash in the bank to repay the sukuk that matures in 2010 at the end of 2009 – if new money will be so expensive (double digit yields), why not just pay that off and THEN come to market – may be a little cheaper then. Dar Al Arkan says that the capital they are looking to raise is actually to help finance $720 million in Capex over 2010. Book runners are guiding towards the end of the week for more clarity around size, price, timing etc.

Emirates NBD – ENBD, who was on a roadshow towards the end of 2009, looking to issue bonds, has said that they will not be tapping the markets during the first half of 2010. The bank has two bonds that mature in 2010 – one in Q.1 and one in Q.4 – both $750 million in terms of size.

I am going to reiterate the position I had taken at the start of the year – there are 3 names to own in Dubai that I think are no brainers, and 1 that involves a little more risk (I'm not going to get into details reasons why I like each of the name I mention – please see my note from early this year or please give me a call to discuss.) (1) Dubai Sovereign sukuks offering 8.33% for 5 year sovereign paper are a steal – they need to be owned. They are trading 250 bps wider than the RAK 5 year paper – I don't know what Bizzaro world that makes sense in??!!?? JAFZA and DP World have been ring fenced as strategically important to Dubai – I would argue that they are significantly important to the UAE as a whole. (2) JAFZA 2012 paper offers an YTM of 12.90% - levels wider than December 31, 2009! Buy it. (3) DP World I'm a little less enthusiastic about – not because I don't think it's a great proxy to a recovery in global trade in 2010, but because 17s spread to the Dubai sovereign is only 30 bps or so – It's a good buy, but I like the Dubai Sovereign better and the delta in yield doesn't excite me – if you own it, keep it – I wouldn't rush out to buy it today. Now for the name that hasn't been ring fenced – a little more risk for a lot more return. (4) DIFC Sukuk - DIFC's have given back all the gains made during the second week of January, and are now trading at similar levels to the start of the year. At 17.76%, they are looking attractive again, and I think they are both a good short term, as well as a long term play.