DUBAI: United Arab Emirates property firm Arada Developments is seeking up to $500 million from an Islamic bond, or sukuk, two sources familiar with the matter said, as it joins other property firms tapping debt markets amid a construction boom in the Gulf state.
Sharjah-based Arada would join a slew of Gulf property firms to issue bonds this year, which have tapped debt markets forfinancing needs and to capitalise on a real estate boom as Gulf countries accelerate economic diversification strategies.
Arada plans to launch the bond next week and use funds from the debt sale to acquire new land, the sources said, declining to be named because they were not authorised to speak publicly.
The plan was not yet finalised, they said.
A spokesperson for Arada did not respond to a Reuters request for comment.
Arada last tapped debt markets in September for a $150 million tap of its $400 million sukuk due 2029 which attracted strong demand and offered a yield of more than 7%.
In the Middle East and North Africa, issuers raised a record $32.2 billion through sukuk in the six months to June 30, according to LSEG data, defying tariff uncertainty, geopolitical tensions and volatile oil prices.
Regional developers which have raised Islamic debt this year include Dubai’s Sobha Realty and Omniyat, both raising $500 million in May.
Arada was established in 2017 by Sharjah’s deputy ruler, Sheikh Sultan bin Ahmed AlQasimi and Prince Khaled bin Alwaleed bin Talal AlSaud, the son of Saudi billionaire Prince Alwaleed Bin Talal.
It has projects and assets in its home country, and expects to launch sales and construction in Australia by the end of 2025.
The company posted total revenue of $1.1 billion last year, up around 40% from 2023, according to a company presentation.
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