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Sharjah-based developer Arada is preparing to issue up to USD 500 million in a sukuk Islamic bond to finance fresh land purchases and support its growth during the UAE's booming real estate cycle. Following a strong USD 150 million sukuk tap last September and a USD 400 million issuance prior, Arada aims for similarly high demand. It joins regional peers like Sobha Realty and Omniyat, who also raised USD 500 million this year. Founded in 2017, the firm posted over USD 1.1 billion in revenue last year, marking a 40% rise and expanding internationally, including plans in Australia.
Arada Developments is gearing up to raise as much as USD 500 million through a sukuk, intending to allocate the funds to acquiring land. This comes as multiple Gulf developers are turning to Islamic debt to ride the wave of surging construction activity. Advertisement
The developer, co-founded by Sharjah's deputy ruler Sheikh Sultan bin Ahmed Al Qasimi and Saudi Prince Khaled bin Alwaleed, last tapped debt markets in the previous September, issuing USD 150 million atop its USD 400 million sukuk which drew yields above 7%. Now it hopes to replicate that success ahead of its upcoming issuance.
Corporate sukuk issuance in the Middle East and North Africa hit record levels recently USD 32.2 billion in six months despite broader economic uncertainty. Within the UAE, Sobha Realty and Omniyat also issued USD 500 million sukuk earlier this year, reflecting strong investor appetite.
Since its inception in 2017, Arada has launched projects valued at AED 60 billion across Dubai and Sharjah. With last year's revenue reaching USD 1.1 billion a near 40% increase from the prior year Arada is now looking beyond domestic borders, setting sights on Australia with a project expected to commence sales and construction by late 2025.
Previously, Arada had raised USD 400 million under a sukuk programme launched in mid 2024 and it had debuted its first USD 500 million sukuk in 2022. Along with recent moves to adjust covenants on its existing USD 500 million trust certificates due in 2027, the latest issuance underlines a calculated strategy to tap Sharia compliant finance at favourable terms and support its ambitious growth trajectory.
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