Sharjah, UAE - Arada has raised $400 million from a five-year senior unsecured sukuk, the first debt sale by a UAE real estate developer since the regional conflict broke out in February 2026, the Sharjah-based developer said.
The Islamic bond drew orders of more than $700 million, not counting interest from the joint lead managers, and demand at its peak reached twice the amount on offer. The certificates trade on both the London Stock Exchange and Nasdaq Dubai.
Arada priced the fixed-rate Reg S issue with an 8.875% coupon, tightening from initial price thoughts of 9.375%. Fitch has assigned the sukuk an expected rating of BB-, and Moody’s an expected B1.
The developer itself carries a B1 rating from Moody’s and B+ from Fitch. It said the deal reflects its credit strength, since it has kept access to international debt capital markets through heightened geopolitical uncertainty and volatile market conditions.
Buyers came from both regional and international investor pools, according to the company.
Arada expects the issue to be largely leverage-neutral. Some of the money raised will pay for a capped offer to buy back up to $180 million of its outstanding sukuk. The company said the buyback forms part of a wider plan for managing its debt before a $411.7 million sukuk paying 8.125% matures in June 2027.
HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, said: “Our return to the international debt markets is a testament to the resilience of Arada’s business and the enduring confidence of regional and global investors not just in our story, but in UAE real estate more generally. Despite a period of significant disruption across the region, we were able to attract strong demand from a diversified investor base, and we are grateful for that continued trust as we pursue our next phase of growth.”
Seven banks acted as Joint Global Coordinators on the deal: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank.
Arab Bank, Arqaam Capital, Bank ABC, Goldman Sachs International, JP Morgan Securities, Sharjah Islamic Bank and Warba Bank worked on the transaction as Joint Lead Managers and Bookrunners.
Launched in 2017, Arada Group has grown beyond the UAE into property markets in Australia, the UK, Syria and Saudi Arabia, where it set up a Saudi unit with a $13.3 billion land portfolio in October. Arada values its worldwide pipeline of current and planned projects at more than $50.37 billion (AED 185 billion).
Across the UAE, the developer’s sales since its founding total more than 20,000 units, worth upwards of $10.89 billion (AED 40 billion). Worldwide, more than 17,000 of its units are complete.
