Monday saw bonds sold by Dubai state-owned companies hit a near 12-month high, with rumors floating around that a "friendly" early restructuring of corporate debt might be achieved by the emirate.

According to a well-known news agency, investors have been apparently encouraged by the Dubai government's announcement on Sunday to reorganize state-owned Dubai Holding LLC, and to speed up the issuance of the second-half of a $20 billion bonds program that will help the government provide cash to companies struggling to refinance maturing debt.

Abdul Kadir Hussain, CEO of Mashreq Capital said: "The market has started to get the comfort that there are potential repayment possibilities, or at least some friendly restructuring possibilities."

Data released by to Citigroup Inc. specifies that Nakheel's three-year bond, due 14th December, traded at 92.25 cents to the dollar at 2:01 p. m. in Dubai. On 14th August, the bond closed at 92.50 cents, which was its highest price since 15th September and higher from its one-year low of 63.5 cents in February.

In the meantime, an increase was noticed in Dubai Holding's seven-year 740 million euro bond, due in 2014, to 80 cents Monday, rebounding from 52 cents in February.

It was Sunday that Dubai Holding, the investment group owned by Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, declared it was mulling to divide its operations into four different units - property, business parks, hospitality and investments.

"The realities of the global economic climate have made it necessary for us to look at our portfolio in a different way. In order to remain competitive in the marketplace, and be sure that we are poised for success once the markets open up, we've undertaken a number of changes that will reinforce and strengthen our business," said chief executive Ahmad bin Byat in a statement.