The UAE's Tourism Development & Investment Company (TDIC) is set to launch a benchmark Islamic bond issue for general corporate purposes, two bankers familiar with the deal have said.

The Abu Dhabi-based firm, which is developing projects including spin-offs of the Louvre and Guggenheim museums in the UAE capital, is re-entering the bond market after selling $1 billion of conventional bonds in June, according to a report in our sister newspaper Gulf Daily News.

HSBC, Abu Dhabi Commercial Bank and Standard Chartered have been mandated for the Islamic bond, or sukuk sale, the bankers said.

'TDIC is aiming for something between $500 million and $1 billion,' said one of the bankers.

Both bankers said the issue would be used for general corporate purposes.

'We cannot comment at this stage,' a TDIC spokesman said.

TDIC's conventional five-year bonds were priced at 390 basis points over US Treasuries.

State and corporate issuers in the world's largest oil exporting region have raised more than $15 billion by issuing bonds over the last six months.

Many are eyeing further sales as demand rises for high-rate emerging market debt and governments look to boost infrastructure spending to shelter the region's economy from the global financial crisis.