Nakheel, the real-estate developer controlled by Dubai’s government, may offer to buy back its $3.52 billion Islamic bonds before they come due in December, Barclays Capital said.

'A tender could be launched in the next few weeks, offering immediate cash payment at a discount,' Alia Moubayed, London-based senior economist for the Middle East and North Africa at Barclays Capital, said in a 19 June report, e-mailed today. Nakheel may also offer to extend the maturity of the Islamic bond, or so-called sukuk, 'on attractive terms,' she said.

The acceptance of the offer by international investors is likely to be low as many of them expect 'the sukuk could be repaid in full upon maturity,' Moubayed said. Some local investors may prefer a maturity extension, she added.