Dubai property concerns hit top builder's sukuk

[DUBAI] Islamic bonds from Damac Real Estate Development Ltd have become the region's worst performers this year just three months after they were issued, amid concern Dubai's property boom is running out of steam.

The developer, which once raffled a Caribbean island in a bid to sell more luxury apartments, was last month caught up in a sell-off led by property securities that sent the local equity gauge into a bear market.

The yield on Damac's 2019 sukuk jumped 69 basis points (bps) to 5.87 per cent in June, according to Bloomberg data, compared with the 10 bp increase to 4…