In a significant move for the United Arab Emirates’ real estate sector, developer Arada has successfully raised $400 million through a five-year sukuk issuance. This marks the first such debt offering by a UAE-based property firm since regional geopolitical tensions escalated in early 2026. Despite the climate of uncertainty, the offering drew substantial interest from both international and local investors, with the final order book exceeding $700 million. This robust demand allowed the company to price the sukuk at an 8.875 percent coupon, notably tighter than the initial guidance of 9.375 percent.

The proceeds from this issuance, which is now listed on both the London Stock Exchange and Nasdaq Dubai, are strategically aimed at optimizing the developer’s debt profile. Arada plans to use a portion of the funds to repurchase up to $180 million of its existing debt ahead of a major 2027 maturity deadline. According to Prince Khaled bin Alwaleed bin Talal Al Saud, the successful transaction underscores the enduring appeal of the UAE property market and the resilience of Arada’s growth strategy. With a global project pipeline valued at over Dh185 billion, the company continues to focus on international expansion and long-term financial stability.