Lebanon's worst bond market shock in a decade has raised doubts about whether the country's banks are willing and able to continue to bankroll the government, raising pressure on Beirut to step up reforms or risk a destabilising currency crisis, the International New York Times reported on a Reuters story. In September the cost of insuring Lebanese sovereign debt against default soared to its highest level since the global financial crisis of 2008, implying a more than 40 percent chance of default in the next five years.

It took almost 16 years to build Abraaj Group into one of the most influential emerging-market investors and the Middle East’s biggest private equity dealmaker, Bloomberg News reported. The Dubai-based firm’s dramatic collapse took just four months. Suitors are now circling the company’s funds as liquidators seek to settle about $1 billion in debt. The problems for the buyout firm and its founder, Arif Naqvi, began in February with allegations that money in the company’s health fund had been misused.

Saudi Arabia's first comprehensive bankruptcy law went into effect last month, one of many reforms to the legal system that economists say may be more important in the long run than high-profile privatizations, the International New York Times reported on a Reuters story. Crown Prince Mohammed bin Salman's Vision 2030 push to diversify the economy away from oil has grabbed attention for its big-ticket initiatives, such as a $500 billion business zone and a plan, now shelved, to sell part of the state oil firm.

Abraaj, once one of the most influential emerging-market investors, plans to vacate its headquarters in Dubai’s business hub after the embattled buyout firm failed to pay rent, people with the knowledge of the matter said. Dubai International Financial Centre told Abraaj to vacate its main office in the financial freezone by the end of the month, the people said, asking not to be identified as the information is private, Bloomberg News reported. The lease on one of the company’s offices has expired, one of the people said.

Egyptian officials plan to launch Asian and European tours starting in the week after next to market international bonds, which will be offered when the time is right, Finance Minister Mohamed Maait said on Tuesday. Egypt plans to issue Eurobonds worth about $5 billion in the coming months, Reuters reported. “The week after next, we will start promotional tours in the Asian markets, then Europe in preparation for issuing Eurobonds bonds,” Maait said at a business event in Cairo.

The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said. At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners, Reuters reported. The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said.

The cost of insurance on Lebanese sovereign bonds has soared in recent weeks, reflecting concerns about the sustainability of the country’s debt burden as its economy slows and faces a potential cash crunch, the Financial Times reported. Like many emerging markets, rising global interest rates are swelling Lebanon’s external financing costs as the economy’s growth rate slows to 1.3 per cent this year. The country has the world’s third highest debt-to-GDP ratio at 150 per cent, a legacy of borrowing from public markets to rebuild after its devastating civil war.

Dubai’s flagship airline Emirates is looking at taking over unprofitable neighbor Etihad, according to four people familiar with the matter, in a move that would create the world’s biggest carrier by passenger traffic. The talks, which are at a preliminary stage, would see Emirates acquire the main airline business of Abu Dhabi’s Etihad, which would keep its maintenance arm, according to the people, who asked not to be named because the matter is confidential, Bloomberg News reported. The negotiations could yet fall through, they said.

Abu Dhabi Financial Group (ADFG) has submitted a revised bid to acquire the management rights for the Middle East funds of stricken Dubai-based Abraaj, according to a document seen by Reuters. The Abu Dhabi-based alternative investment firm is among more than a dozen bidders seeking to buy the bulk of Abraaj’s private equity funds, Reuters reported. But in a letter to investors in Abraaj Funds, ADFG said that the bid is unlikely to materialize given the “convolution” of the situation. To address this, ADFG is seeking a dedicated budget to conduct a full forensic audit and a litigation budget.

Shareholders of loss-making Dubai construction company Drake & Scull will meet on Sept. 27 to decide whether to dissolve the company, Drake & Scull announced on Wednesday. The company, which posted a second-quarter net loss of 181.1 million dirhams ($49.3 million) compared to a year-earlier loss of 182.7 million dirhams, said it was calling a general assembly under an article of United Arab Emirates company law, Reuters reported. The law requires companies to vote on whether they should continue operating if their accumulated losses have reached half of their issued share capital.