What was the value and coupon rate of Arada's new Sukuk?

Arada issued a Senior Unsecured Sukuk valued at **$400 million** with a five-year fixed-rate coupon of **8.875%**.

Where is the new Sukuk listed?

The new $400 million Sukuk issued by Arada is listed on the **London Stock Exchange** and **Nasdaq Dubai**.

What is the purpose of the proceeds from this Sukuk issuance?

A portion of the proceeds will fund a capped tender offer of up to **$180 million** for Arada's existing Sukuk, as part of its strategy to manage the **$411.7 million Sukuk maturing in June 2027**.

Which financial institutions were involved as Joint Global Coordinators for the Sukuk?

The Joint Global Coordinators included **Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank**.

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Development·30 October 2026

Arada Reopens UAE Real Estate Debt Markets with $400 Million Sukuk Issuance

Sharjah-based developer Arada has successfully issued a $400 million Senior Unsecured Sukuk, reopening the UAE real estate debt markets for the first time since February 2026.

Arada, a prominent real estate developer based in Sharjah, has successfully issued a $400 million Senior Unsecured Sukuk, marking the first such issuance by a UAE real estate developer since February 2026. This transaction signals the reopening of the UAE real estate debt markets following a period of regional geopolitical disruption.

Sukuk Details and Investor Demand

The five-year fixed-rate Reg S Sukuk, which is now listed on the London Stock Exchange and Nasdaq Dubai, was priced with a coupon of 8.875%. This was a notable reduction from the initial price thoughts of 9.375%. The offering attracted significant interest from both regional and international investors, with the final order book exceeding $700 million, representing an oversubscription rate of more than 2x at its peak. The Sukuk received expected ratings of BB- by Fitch and B1 by Moody’s.

Strategic Debt Management

A portion of the proceeds from this new issuance will be allocated to a capped tender offer of up to $180 million for Arada's existing Sukuk. This forms part of Arada's broader debt management strategy, aiming to address its $411.7 million Sukuk maturity in June 2027.

"Our return to the international debt markets is a sign of 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."

HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, emphasised the strong investor confidence in Arada and the broader UAE real estate sector, despite recent regional disruptions.

Arada's Global Reach

Since its inception in 2017, Arada Group has expanded its operations across the UAE and into international markets including Australia, the UK, Syria, and Saudi Arabia. The company offers a global pipeline of existing and future projects valued at over AED 185 billion. In the UAE alone, Arada has sold over 20,000 units with a value exceeding AED 40 billion, and has completed over 17,000 units worldwide.

Frequently asked

Questions, answered

What was the value and coupon rate of Arada's new Sukuk?: Arada issued a Senior Unsecured Sukuk valued at **$400 million** with a five-year fixed-rate coupon of **8.875%**.
Where is the new Sukuk listed?: The new $400 million Sukuk issued by Arada is listed on the **London Stock Exchange** and **Nasdaq Dubai**.
How much demand did the Sukuk offering attract?: The offering attracted strong demand from regional and international investors, with the final order book exceeding **$700 million**, representing an oversubscription rate of more than 2x.
What is the purpose of the proceeds from this Sukuk issuance?: A portion of the proceeds will fund a capped tender offer of up to **$180 million** for Arada's existing Sukuk, as part of its strategy to manage the **$411.7 million Sukuk maturing in June 2027**.
Which financial institutions were involved as Joint Global Coordinators for the Sukuk?: The Joint Global Coordinators included **Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank**.

Reported by

Emerging Dubai Developers

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This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.

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